As per section 262 of the Income Tax Act- 2025 (“IT Act”), every person who has been allotted a PAN and is eligible to obtain Aadhaar number, is required to mandatorily link their PAN with Aadhaar. Further, if PAN is not linked with Aadhaar, PAN will become inoperative and it will result into consequences as mentioned in question 3 below.
Is it mandatory to link Aadhaar with PAN? Are there any exemptions?
Yes, all the Individuals who are eligible to obtain Aadhaar are mandatorily required to link PAN with Aadhaar.
As per Notification No. 37/2017 dated 11 May 2017, following categories are exempted from Aadhaar–PAN linking:
- Non-resident Indians (NRIs)
- Not a citizen of India
- Individuals having age more than 80 years
- State of residence is Assam, Meghalaya, or Jammu & Kashmir.
What will happen if I do not link Aadhaar with PAN?
If PAN is not linked with Aadhaar then PAN will become inoperative and the same will have the consequences, as mentioned in Question no.3 below.
What is the impact for customers whose PAN is inoperative?
As per Circular No. 3 of 2023:
(1) Bank is required to withhold tax at source (TDS)/collect tax at source (TCS) at 20%.
(2) Pending income tax refunds shall not be issued by the Income Tax Department.
(3) Interest shall not be payable by the Income Tax Department on refunds for the period during which PAN is inoperative.
Thus, for Bank’s customers, TDS shall be deducted at 20% on cash withdrawals and interest of fixed and recurring deposits.
Where can I check whether my Aadhaar and PAN are linked or not?
To check the status, please click on the link given below and fill in the required details:
https://eportal.incometax.gov.in/iec/foservices/#/pre-login/link-aadhaar-status
Alternatively, go the home page of Income Tax e-Filing portal, click on ‘Link Aadhaar Status’ reflected under quick links tab.
Is there any fee or penalty for linking PAN–Aadhaar now?
Yes. There is a fee of INR 1,000 which is levied by the Income Tax Department. Fee of INR 1,000 is to be paid before linking PAN with Aadhaar.
How can I link my PAN with Aadhaar?
You can link your PAN with Aadhaar after visiting the Income Tax portal at (https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar) and follow the steps mentioned therein.
What if I face any issue while linking my Aadhaar and PAN (e.g., address, name, date of birth mismatch)?
For these issues, you can contact the issuing authorities of Aadhaar and PAN.
| Document | Issuing Authority | Website |
| Aadhaar | UIDAI | https://uidai.gov.in/ |
| PAN | NSDL | https://nsdl.co.in/ |
Am I required to submit any information with Bank if my PAN is linked with Aadhaar now?
If your PAN is linked with Aadhaar now, please visit your nearest Bank branch and submit proof of linking with the branch in order to enable the bank to deduct TDS at the normal rate.
Disclaimer
The above FAQs are an easy compilation of the provisions of law for customer convenience and do not claim legal validity. Customers should act after obtaining proper legal advice.
