PAN-Aadhaar Linking Deadline: Complete Step-by-Step Guide to Avoid Inoperative Status

New Delhi: With the December 31, 2025 deadline fast approaching, taxpayers are being urged to link their PAN (Permanent Account Number) with their Aadhaar card immediately. Failure to do so will result in a late fee of ₹1,000 and, more critically, lead to the PAN card becoming inoperative.

Why Linking is Mandatory

Under current income tax rules, linking is compulsory for all taxpayers. An inoperative PAN can lead to several complications:

• Inability to file income tax returns (ITR).
• Pending refunds will not be processed.
• Higher TDS (Tax Deducted at Source) rates will apply.
• Difficulty in opening bank accounts or carrying out high-value financial transactions.

How to Link Your PAN with Aadhaar Online

The process can be completed through the official Income Tax e-filing portal. Follow these steps:

1. Visit the Portal: Go to the Income Tax e-filing website.
2. Access Link Aadhaar: Under the ‘Quick Links’ section, click on ‘Link Aadhaar’.
3. Enter Details: Provide your PAN and Aadhaar number and click ‘Validate’.
4. Payment of Fee: Click on ‘Continue to pay through e-Pay Tax’.
5. E-Pay Tax Details: Enter your PAN again, confirm it, and provide your mobile number to receive an OTP.
6. Selection: After OTP verification, select the ‘Income Tax’ tile and click ‘Proceed’.
7. Assessment Year: Select Assessment Year (AY) 2026-27 and under ‘Type of Payment’, choose ‘Other Receipts (500)’.
8. Final Submission: After successful payment of the ₹1,000 fee, wait for 4-5 working days for the payment to be updated. Revisit the ‘Link Aadhaar’ page, enter your details again, and submit the link request.

Status Check and New Provisions

If you are unsure whether your cards are already linked, you can use the ‘Link Aadhaar Status’ tool on the same portal.

Additionally, the UIDAI and the Income Tax Department have streamlined digital KYC processes this year. Banks can now utilize Aadhaar OTP-based authentication and Video KYC to verify customer identities, making the overall verification landscape more efficient for those with linked IDs.

Note: For individuals applying for a new PAN card, Aadhaar-based verification is now mandatory at the time of application, ensuring automatic linking from the start.