Linking Pan With Aadhaar: Free Or Fee?

As of June 2023, it is mandatory for all taxpayers with a PAN card to link it with their Aadhaar card. The last date for linking the two was 30 June 2023. If you missed this deadline, you can still link your PAN and Aadhaar by paying a late penalty of Rs.1,000. This can be done via the Income Tax e-Filing Portal.

What is the fee for linking PAN with Aadhaar?

The Indian government has made it mandatory for all taxpayers with a PAN card to link it with their Aadhaar card. The last date for linking PAN with Aadhaar was 30 June 2023, and a late penalty of Rs. 1,000 must be paid before requesting to link the two. This penalty can be paid on the Income Tax e-Filing Portal. After payment, the PAN-Aadhaar linking request can be made in post-login or pre-login mode.

Step 1: Visit the Income Tax e-Filing Portal

Go to the official Income Tax e-filing website.

Step 2: Click on the 'e-Pay Tax' option

On the homepage, under the 'Quick Links' section, click on the 'e-Pay Tax' option.

Step 3: Enter your PAN details

Enter your PAN number under the 'PAN/TAN' column and re-enter it under the 'Confirm PAN/TAN' column. Also, enter your mobile number to receive the OTP.

Step 4: OTP verification

You will receive an OTP on your registered mobile number. Enter this OTP and click on the 'Continue' button.

Step 5: Click on the 'Proceed' button

After OTP verification, you will be redirected to the e-Pay Tax page. Click on the 'Proceed' button under the 'Income Tax' tab.

Step 6: Select the relevant Assessment Year and Type of Payment

Select the Assessment Year as '2025-26' and the Type of Payment as 'Other Receipts (500)'.

Step 7: Make the payment

The applicable amount of Rs. 1,000 will be pre-filled against the 'Others' option. Click on the 'Continue' button and proceed to make the payment. You can pay the fee through net banking, debit card, over the counter, NEFT/RTGS, or payment gateway option.

After paying the fee, you can proceed to submit your PAN-Aadhaar linking request. This can be done both online and offline. For online linking, you can log in to your account on the Income Tax e-filing portal or submit the request without logging in. If you choose to link without logging in, enter your PAN and Aadhaar numbers, your name as per your Aadhaar card, and your mobile number. Then, click on the 'Link Aadhaar' button and enter the OTP received on your mobile number.

How to link PAN with Aadhaar online?

The government of India has made it mandatory for all taxpayers with a PAN card to link it with their Aadhaar card. The last date for linking Aadhaar with PAN was 30 June 2023. If you missed the deadline, you can still link your Aadhaar with PAN by paying a late penalty of Rs. 1,000. Here are the steps to link your PAN with Aadhaar online:

Payment of penalty:

• Visit the Income Tax e-Filing Portal.
• Click on the 'e-Pay Tax' option under the 'Quick Links' heading.
• Enter your PAN number, confirm PAN, and enter your mobile number to receive the OTP.
• After OTP verification, you will be redirected to the e-Pay Tax page. Click on 'Continue'.
• Click on 'Proceed' under the 'Income Tax' tab.
• Select the Assessment Year as '2025-26', the Type of Payment (Minor Head) as 'Other Receipts (500)', and the Sub-type of Payment as 'Fee for delay in linking PAN with Aadhaar'.
• The applicable amount will be pre-filled. Click on 'Continue' and make the payment.

Submit the Aadhaar-PAN link request:

There are two ways to submit the Aadhaar-PAN link request: without logging into your account and logging into your account.

Method 1: Without Logging into Your Account

• Go to the Income Tax e-filing portal. Under 'Quick Links', click on the 'Link Aadhaar' tab.
• Enter your PAN and Aadhaar number and click on the 'Validate' button.
• Enter your name as per your Aadhaar card and your mobile number.
• Click on the 'Link Aadhaar' button.
• Enter the OTP received on your mobile number and click on the 'Validate' button.
• The request for PAN Aadhaar linking will be sent to the UIDAI for validation.

Method 2: Logging into Your Account

• Register yourself on the Income Tax e-filing portal if you are not already registered.
• Log in to the e-filing portal of the income tax department by entering your user ID.
• Confirm your secure access message and enter your password. Click on 'Continue'.
• After logging in, click on 'Link Aadhaar'. Alternatively, go to 'My Profile' and select 'Link Aadhaar' under the 'Personal Details' option.
• Enter your Aadhaar number and click on the 'Validate' button.
• A pop-up message will confirm that your Aadhaar number has been successfully linked to your PAN card.

What is the deadline for linking PAN with Aadhaar?

The deadline for linking PAN with Aadhaar was 30 June 2023. The government of India has made it mandatory for all taxpayers with a PAN card to link it with their Aadhaar card within the deadline.

If the PAN-Aadhaar linking is not done within the deadline, the PAN card will become inoperative from 1 July 2023. This means that:

• Your PAN will become inoperative.
• Pending tax refunds and interest on such refunds will not be issued.
• TDS will be required to be deducted at a higher rate.
• TCS will be required to be collected at a higher rate.
• The income tax department will not process the returns until PAN and Aadhaar are linked.

However, you can still link your Aadhaar with PAN even after it becomes inoperative by paying a late penalty of Rs. 1,000.

What happens if I don't link PAN with Aadhaar?

If you don't link your PAN with your Aadhaar, your PAN will become inoperative. This means that you will not be able to provide your PAN number for financial transactions. For example, you will not be able to open a bank account, obtain a credit or debit card, or purchase mutual fund units. Your PAN will also be required to make a time deposit with a bank exceeding Rs.50,000 or aggregating to more than Rs.2,50,000 during a financial year.

Additionally, if you do not link your PAN with your Aadhaar, you will not be able to file your income tax returns or claim tax refunds. The Income Tax Department will not process any returns until PAN and Aadhaar are linked. You will also not be able to submit 15G/15H declarations for nil TDS.

If you have not linked your PAN with your Aadhaar by the deadline of 30th June 2023, you will need to pay a late penalty of Rs.1,000. You can still link your PAN with your Aadhaar after this date, but it will take around 7 to 30 days for your PAN to become operative again.

Who is exempt from linking PAN with Aadhaar?

The following groups are exempt from linking their PAN with their Aadhaar:

• Residents of the states of Assam, Jammu and Kashmir, and Meghalaya
• Non-residents as per the Income-tax Act, 1961
• People aged 80 or above at any time during the previous year
• Those who are not citizens of India

The exemptions provided are subject to modifications depending on subsequent government notifications on this subject.

For those who fall into one of the above categories but still wish to link their Aadhaar with their PAN voluntarily, there is no need to pay a fee.

Frequently asked questions