New Delhi | With the year drawing to a close, the deadline for Aadhaar–PAN linking has once again come into focus. Until December 31, the facility provided by the Income Tax Department allows individuals to link Aadhaar and PAN free of cost. Missing the deadline could not only invite a linking fee, but also lead to disruptions in routine banking and tax-related activities.
According to tax experts, PAN has become the backbone of almost every major financial transaction—bank accounts, investments, loans, cards and income tax returns—while Aadhaar has emerged as a primary identity document for a wide range of government and non-government services. Failure to link the two can create system-level inconsistencies, directly affecting tax compliance and access to financial services.
What Gets Affected If Aadhaar–PAN Is Not Linked
As per guidelines issued on tax portals and by financial service providers, non-linking of Aadhaar and PAN may result in:
- Delay or blockage in ITR refunds
- Technical issues while filing ITR in the next assessment year
- Higher rates of TDS/TCS deduction
- Difficulty in opening a new bank account
- Problems in issuing debit or credit cards
- Restriction on depositing more than ₹50,000 cash in a day in banks or post offices
- Annual cash deposits capped at ₹2.5 lakh
- Certain transactions above ₹10,000 may be restricted
Who Must Link and Who Is Exempt
Mandatory: Individuals whose Aadhaar was issued before October 1, 2024, and who file income tax returns.
Exemptions: Those who do not file ITRs; residents of Jammu & Kashmir, Assam and Meghalaya; senior citizens above 80 years of age; and foreign nationals.
SMS Linking: Fastest Method
Those with a mobile number registered with both Aadhaar and PAN can complete linking within seconds via SMS:
- Format: UIDPAN <12-digit Aadhaar> <10-digit PAN>
- Send to: 567678 or 56161
Example: UIDPAN 987654321012 ABCDE1234F
A confirmation message is received upon successful linking.
Online Linking: Step-by-Step Guide
- Visit the Income Tax e-filing portal
- Click on the ‘Link Aadhaar’ option
- Enter Aadhaar number and PAN
- Provide the registered mobile number
- Give consent for validation with UIDAI
- On successful verification, the message ‘PAN has been linked successfully’ will appear
Mismatch in Name or Date of Birth? Get It Corrected First
If there is any mismatch in name, date of birth or gender between Aadhaar and PAN records, the linking request may fail. In such cases, corrections must first be made either with UIDAI or in PAN records. Linking will succeed only after the details are aligned.
Experts’ Advice
Tax professionals advise against waiting until the last date. As deadlines approach, portal congestion and OTP delays become common. Completing the process in advance not only avoids possible fees, but also ensures uninterrupted banking and tax operations.
Conclusion: If you have not yet linked your Aadhaar with PAN, complete the process before December 31. This simple, minutes-long exercise can help you avoid significant inconvenience in the months ahead.
