Why is it mandatory to link PAN with Aadhaar?

Linking PAN with Aadhaar helps streamline the taxation process and prevents fraudulent activities.

Is there a penalty for not linking PAN with Aadhaar?

Yes, a penalty of up to Rs 1,000 may be imposed for the failure of linking PAN with Aadhaar.

Is PAN-Aadhaar linking mandatory for everyone?

No, it is not mandatory for people in Jammu & Kashmir, Assam, and Meghalaya, people above 80 years of age, and non-citizens of India.

Can I file my tax returns without linking PAN with Aadhaar?

No, filing tax returns is not possible without linking PAN with Aadhaar.

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PAN Aadhaar Linking: What You Need To Know About The Deadline, Penalty & Linking Process?

Pragya Pathak

Author

Updated: 28-01-2025 at 6:13 AM

PAN Aadhaar Linking: What You Need To Know About The Deadline, Penalty & Linking Process?

Every person who is a taxpayer is mandated to do the PAN Aadhaar link. If a person refuses to link their PAN with an Aadhaar card, the taxpayer's PAN card will be “inoperative” and will cause inconveniences while doing financial transactions. Make sure to do the PAN Aadhaar link to avoid getting penalties as well.

Why Is It Mandatory To Do The PAN Aadhaar Link?

The main objective for making the PAN Aadhaar link mandatory is to streamline the taxation process and to prevent fraudulent activities.

Other reasons to mandate Pan Aadhaar link are:

It ensures one person one PAN card.
Helps in tracking financial transactions, preventing people from evading tax.
Simplifies the process of tax filing.
Makes it easier to track and curb the circulation of black money.
Ensures that the financial system is transparent.

Read more: Ayushman Card

What Are The Consequences Of Not Linking PAN To Aadhaar Card?

The PAN Aadhar link is mandatory for every taxpayer. The consequences of not doing so are:

The PAN card will be inoperative.
No refunds will be made against such PAN cards.
The tax deduction rate will be higher than usual.
Inconvenience while making a financial transaction.
Hinderance while trading and investing in stocks.

Is There A Penalty?

The failure of linking a PAN to an Aadhaar card not only gives arise to many consequences while making financial transactions, but also gives a penalty to the taxpayer. According to Section 234H of the Income Tax Act, the taxpayer will get a penalty of up to Rs 1,000.

Read more: eShram Card

How To Link PAN With Aadhaar Card?

Given below is the PAN Aadhaar link process:

Go to the official e-Filing Portal of the Income Tax Department.
Register/login.
Go to the ‘Profile Settings’ tab and click on ‘Link Aadhaar’.
Verify the details shown on the screen.
Enter the Aadhaar number and click on ‘Link Aadhaar’.

How To Check PAN-Aadhaar Link Status?

Go to the official Income Tax Portal.
Click on ‘Our Services’.
Select ‘Link Aadhaar–Know Your Aadhaar PAN Link Status’.
Enter PAN and Aadhaar details.
Click on ‘View Link Aadhaar Status’.
The PAN-Aadhaar link status will be displayed on the screen.

For the taxpayers that want to do the PAN Aadhaar link after the deadline, they will be required to pay the penalty first before requesting to do the link on the website

Read more: Jeevan Pramaan Certificate

Is It Mandatory For Everyone?

Certain categories are exempted from the mandatory PAN-Aadhaar linking.

Individuals staying in JammuKashmir, Assam, and Meghalaya.
Non-resident taxable persons as per the Income-tax Act, 1961.
People above the age of 80.
People who are not citizens of India.

Conclusion

Linking PAN and Aadhaar ensures smooth financial transactions and helps curb penalties. This also helps the government to streamline the tax process, prevent fraud, and maintain transparency.

To check your Aadhaar PAN card link status, you can check online here.

Frequently Asked Questions