PAN-Aadhaar linking for ITR filing: Why it matters and how to complete the process online

Linking PAN with Aadhaar is mandatory under Section 139AA of the Income Tax Act, 1961. While Aadhaar-PAN linking is completed automatically for new PAN applicants during the application process, existing PAN holders allotted a PAN on or before 1 July 2017 must complete the linking process separately.

The Income Tax Department offers the Aadhaar-PAN linking facility on the e-filing portal for both registered and unregistered individual taxpayers.

Here's how you can do it.

Why is PAN-Aadhaar linking necessary?

PAN is an important identification document used for income tax filing and several financial transactions.

Linking it with Aadhaar helps the government verify taxpayer details, reduce duplicate PAN usage, and improve transparency in financial reporting.

PAN-Aadhaar linking deadlines have passed, and PANs that remain unlinked with Aadhaar have become inoperative. You can still link your PAN with Aadhaar by paying the applicable fee.

Who needs to link PAN with Aadhaar?

PAN-Aadhaar linking is mandatory for:

• Individuals who were allotted a PAN on or before 1 July 2017.
• PAN holders who received PAN using an Aadhaar Enrolment ID and need to update their actual Aadhaar number.

However, the PAN-Aadhaar linking requirement does not apply to certain exempted individuals. These include:

• Individuals residing in Assam, Jammu and Kashmir, and Meghalaya
• Individuals who are classified as non-residents
• Individuals who are 80 years of age or above at any time during the relevant previous year

What happens if PAN becomes inoperative?

If a PAN becomes inoperative due to non-linking with Aadhaar, taxpayers may face difficulties while carrying out tax-related activities. These include:

• Any income tax refund due to the taxpayer will not be issued until the PAN becomes operative again.
• Interest on such refunds will not be paid for the period during which the PAN remains inoperative.
• Tax deducted at source (TDS) may be charged at a higher rate.
• Tax collected at source (TCS) may also be collected at a higher rate.

What are the key requirements before linking PAN with Aadhaar?

Before starting the process, taxpayers should keep the following details ready:

• Valid PAN number
• Valid Aadhaar number
• Mobile number linked for receiving OTP

What is the linking process of Aadhaar-PAN on the e-filing portal?

The linking process involves two steps:

• Payment of the applicable fee through the income tax e-filing portal.
• Submission of the Aadhaar-PAN linking request after payment verification.

How to pay the Aadhaar-PAN linking fee online?

Taxpayers can pay the required fee through the e-filing portal by following these steps:

• Visit the e-filing portal and select “Link Aadhaar” under the Quick Links section.
• Enter PAN and Aadhaar details, then click “Validate”.
• Select the option “Continue to Pay Through e-Pay Tax”.
• Enter PAN details and mobile number to receive OTP.
• After OTP verification, proceed to the e-Pay Tax section.
• Select the applicable tax year or financial year.
• Choose the type of payment, and select “Fee for delay in Linking PAN with Aadhaar” under the sub-type of payment.
• The applicable amount of ₹1,000 will be pre-filled. Complete the payment using the available payment options.
• After successful payment, taxpayers can submit their PAN-Aadhaar linking request.

How to link Aadhaar with PAN after payment?

The linking request can be submitted either before logging in or after logging in to the e-filing portal.

Through pre-login mode

• Visit the e-filing portal.
• Click “Link Aadhaar” under Quick Links.
• Enter the PAN and Aadhaar numbers, then validate the details.
• Once payment details are verified, click on “Continue”.
• Enter the required information and submit the request.
• Enter the OTP received on the registered mobile number.
• The Aadhaar-PAN linking request will be submitted successfully.

Through post-login mode

• Log in to the e-filing portal.
• Go to the profile section and select “Link Aadhaar”.
• Enter the Aadhaar number and submit the request.

How to check PAN-Aadhaar linking status?

Taxpayers can check their linking status through the e-filing portal:

• Open the e-filing website.
• Select “Link Aadhaar/View Status” under quick links or on the dashboard after logging in.
• Enter PAN and Aadhaar numbers.
• Click on “View Link Aadhaar Status”.
• The portal will display whether the linking is successful, pending verification, or requires further action.

Disclaimer: This is only for informational and educational purposes. Please consult a qualified tax expert for the latest tax laws and regulations.