PAN–Aadhaar Linking — What an Inoperative PAN Costs (20% TDS, No Refund, No Return Processing, Blocked Investments), the ₹1,000 Fee and the Exact Steps to Link, Name and Date-of-Birth Mismatches, Who Is Exempt, PANs Issued on Aadhaar After October 2024, and How to Check the Status
Video Explanation & Insights
Last date to link your PAN with Aadhaar — the ₹1,000 fee explained
4 videos on this topic
Where the rule stands
Section 139AA required every person eligible for Aadhaar to link it with their PAN. The free window closed on 31 March 2022; a fee of ₹500 applied till 30 June 2022 and ₹1,000 from 1 July 2022; the final deadline to link was 30 June 2023 (the video's warning). Since 1 July 2023 every unlinked PAN is 'inoperative' under rule 114AAA. Linking is still possible at any time on payment of the ₹1,000 fee, and the PAN becomes operative within about 30 days of linking. PANs allotted on the basis of an Aadhaar enrolment ID (before 1 October 2024) had to be linked to the actual Aadhaar number by 31 December 2025 — such PANs are now inoperative if not linked, and no fee is charged for them.
What an inoperative PAN does
| Area | Effect while inoperative |
|---|---|
| TDS and TCS | Deductors must apply the higher rate — 20% (or double the normal rate, if higher) under 206AA/206CC — on salary, interest, rent, property sale, contractor payments; the shortfall is recovered from the deductor if they applied the normal rate, so employers and banks check status monthly |
| Refunds | No refund is issued and no interest under 244A accrues for the inoperative period |
| Returns | The return can be filed but pending actions and processing stall; a return filed with an inoperative PAN was treated as filed but refund withheld |
| Investments and KYC | Mutual-fund and demat KYC becomes 'on hold' — new SIPs, redemptions and transfers are blocked; bank accounts flag the PAN; insurance policy servicing stops |
| Property and vehicles | Registrars and RTOs quote PAN; an inoperative PAN invites the 20% TDS on property and reporting issues |
| Loans and credit cards | Lenders' bureau pulls and KYC fail; some banks freeze cards |
| GST and business | GST registration on that PAN continues, but the income-tax side (TDS credits, refunds) stays blocked |
How to link now
- 1Check status: incometax.gov.in → Quick Links → Link Aadhaar Status → enter PAN and Aadhaar. 'Linked' means nothing to do; 'not linked' continues below.
- 2Pay the fee: Quick Links → e-Pay Tax → enter PAN and mobile OTP → 'Income Tax' → assessment year 2026-27 → type of payment 'Other Receipts (500)' → sub-type 'Fee for delay in linking PAN with Aadhaar' → ₹1,000 → pay by net banking, UPI or card. Wait 4–5 working days for the challan to reflect.
- 3Link: Quick Links → Link Aadhaar → enter PAN, Aadhaar, name as per Aadhaar, mobile → validate → the portal finds the fee challan → OTP on the Aadhaar-linked mobile → submit. A request is sent to UIDAI; the status shows 'request received'.
- 4Wait: UIDAI validates the demographics; the PAN becomes operative within 30 days (often a week). Recheck the status; inform your employer, bank and broker so the normal TDS rate applies from the next payment.
- 5Update KYC: for mutual funds and demat, the KRA re-validates automatically in most cases once the PAN shows 'valid'; otherwise submit a KYC modification.
When the names or dates do not match
- •Minor name differences (initials, spacing, spelling) are accepted with the Aadhaar OTP; a different name, a different date of birth or gender is rejected.
- •Correct the wrong record, not both: if Aadhaar is right, update the PAN through NSDL (Protean) or UTIITSL online 'Change/Correction in PAN' with the Aadhaar as proof (₹110 approx.); if PAN is right, update Aadhaar at an Aadhaar Seva Kendra (₹50) or online for name/DOB with documents.
- •Date of birth on PAN shows only the year for some old PANs — correct it to the full date before linking.
- •Two PANs: surrender the extra one (Form 49A correction / letter to the assessing officer); holding two PANs attracts a ₹10,000 penalty under 272B and the linked one should be the one used in returns.
- •Mobile not linked to Aadhaar: the linking OTP goes to the Aadhaar-registered mobile — update it at an Aadhaar centre first.
Who need not link
- •Non-resident Indians under the Income-tax Act (the residential status must be updated in the PAN database through the jurisdictional officer or the portal's grievance route, else the PAN shows inoperative).
- •Individuals who are not citizens of India.
- •Persons aged 80 years or more at any time in the previous year.
- •Residents of Assam, Meghalaya and Jammu & Kashmir (the exemption notification of 2017).
- •Entities other than individuals — companies, firms, trusts — do not link Aadhaar (their PANs are linked to the signatories' KYC instead).
PAN–Aadhaar: questions we are asked
No — linking is open on payment of the ₹1,000 fee; the PAN becomes operative within about 30 days.
Yes, through the return, once the PAN is operative — the excess TDS is credited in 26AS and refunded after processing; no interest is paid for the inoperative period.
NRIs are exempt from linking, but the PAN database must show non-resident status — get it updated through the jurisdictional AO or the grievance module with passport/visa proof.
Usually accepted; if rejected, correct the PAN record to match Aadhaar (the cheaper and faster route).
The challan takes a few working days to reflect; link once the portal finds the payment.
Yes — status checks for clients and their deductees, fee and linking, PAN/Aadhaar corrections, NRI status updates and duplicate-PAN surrender.