PAN Aadhaar Linking- Know Important Pointers

PAN Aadhaar Linking- Know Important Pointers

PAN Aadhaar linking is a requirement for most financial transactions. Linking PAN with Aadhaar helps reduce tax evasion, streamline financial transactions and increases the efficiency of the taxation system.

Why is PAN-Aadhaar linking important?

PAN-Aadhaar linking is important for the following reasons:

  1. Helps in obtaining tax refund: If there is no linking of PAN with Aadhaar, then there shall be no issuance of refund. Accordingly, linking of PAN with Aadhaar can help in obtaining refund.
  2. Prevents Tax Evasion:By linking PAN with Aadhaar, the individuals cannot escape the taxliability. This is so because both PAN and Aadhaar are unique, and individuals cannot hold multiple PANs and Aadhaars in their name to curb taxes.
  3. Streamlines Financial Transactions:Linking PAN with Aadhaar streamlines financial transactions and enables better tracking of individuals’ financial activities. This helps identify suspicious transactions and reduce black money circulation.
  4. Ensures Accuracy of Financial Information:By linking PAN with Aadhaar, it becomes easier for the government to validate and authenticate individuals’ financial information,reducing errors and discrepancies in tax filings.
  5. Availing Government Services:To avail government services, linking PAN with Aadhaar is often aprerequisite for availing subsidies, ensuring that benefits reach the intended beneficiaries.
  6. Automates Tax Filing Process:Linking PAN with Aadhaar automates the tax filing process as certain details like name, date of birth, and address get automatically filled in the tax return form, reducing the chances of errors and making the process more efficient.
  7. Legal Requirement:The government has mandated the linking of PAN with Aadhaar under various laws and regulations to ensure compliance and improve the effectiveness of the tax system. In addition to this, non-linking of Aadhaar with PAN attracts TDS at higher rates.

Must Read: SEBI Recruitment Notification 2024

Who need to link PAN with Aadhaar?

Individuals that have been assigned a Permanent Account Number (PAN) before 1st July, 2017 are eligible for an Aadhaar number. Therefore, all such individuals who have a PAN and are eligible for an Aadhaar number till the said date are needed to link PAN with Aadhaar.

Last date to link your PAN with Aadhaar

The last date for linking Aadhaar with PAN was 30th June 2023. PAN will become inoperative from 1st July, 2023 if it is not linked with Aadhaar.

Further, the Income Tax Department has issued a reminder to taxpayers to link their PAN with Aadhaar by 31st May 2024 if they have not yet linked them. The reminder also states that if the PAN – Aadhaar linking is not completed within 31st May 2024, it will lead to tax deduction/collection (TDS/ TCS) at a higher rate under Sections 206AA and 206CC of the Income Tax Act, 1961. This is because using an inoperative PAN for transactions before 31 March 2024 is used.

How to link your PAN to your Aadhaar after deadline?

Asstated above, the PAN will become operative, if it is not linked with Aadhaar till 31stMay, 2024. However,you can still apply for linking your PAN with your Aadhaar even now after paying the penalty and your PAN card will be operative within 30 days.

Steps to be followed to link your PAN with Aadhaar

Following are the steps to be followed to link your PAN with Aadhaar

  1. Visit the Income Tax’s e-Filing Portal Home page and click on ‘Link Aadhaar’ in the Quick Links section, or log into the e-Filing portaland click on ‘Link Aadhaar’ in the Profile section.
  2. Enter your PAN and Aadhaar Number details.
  3. Click on ‘Continue’ to Pay Through e-Pay Tax.
  4. Enter your mobile number to receive OTP.
  5. After OTP verification, you will be redirected to the e-Pay Tax page.
  6. Click on ‘Proceed’.
  7. Select the relevant Assessment Year and Type of Payment as ‘Other Receipts’ (500) and click ‘Continue’.
  8. After successful payment, revisit the ‘ Link Aadhaar’ page.
  9. Once the payment details are verified, click ‘continue’ to submit the PAN-Aadhaar link request.


In conclusion, the integration of PAN with Aadhaar is a positive step towards enhancing India’s financial system and regulating the country’s economy. It has helped in improving efficiency and cutting down on overlapping and gaps in the framework of tax regulation. In the tax context people may seek information on income tax service or need GST consultation or may even need to avail PAN registration services, “TaxHelpdesk” serves as a valuable tool. Their skills help to establish the facts and, therefore, give people the knowledge they need to make applicable changes to their current financial situations. Towards this end, for hassle-free compliance solutions supported by PAN services, as well as assured taxation and PAN-related services comprehension, “TaxHelpdesk” is ready to become a one-stop solution for clients.

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