PAN-Aadhaar linking is mandatory under Section 139AA of the Income Tax Act, 1961 for eligible taxpayers. While Aadhaar-PAN linking is completed automatically for new PAN applicants during the application process, existing PAN holders allotted a PAN on or before 1 July 2017 must complete the linking process separately. According to the latest user manual from the Income Tax Department, the Link Aadhaar service is available to individual taxpayers (both registered and unregistered) on the e-filing portal at www.incometax.gov.in. The manual clarifies that if you do not link your PAN with Aadhaar, your PAN will become inoperative, making this a critical compliance requirement for all eligible taxpayers.
The PAN-Aadhaar linking requirement does not apply to certain exempted individuals as reported by Mint. These include individuals residing in Assam, Jammu and Kashmir, and Meghalaya, individuals who are classified as non-residents, and individuals who are 80 years of age or above at any time during the relevant previous year. Additionally, PAN holders who received PAN using an Aadhaar Enrolment ID and need to update their actual Aadhaar number must complete the linking process. The latest user manual confirms that there are specific categories of taxpayers who fall under the exempted category and will not be subject to the effects of PAN becoming inoperative.
If a PAN becomes inoperative due to non-linking with Aadhaar, taxpayers may face significant difficulties according to Mint reports. These include any income tax refunds not being issued until the PAN becomes operative again, with interest on such refunds not being paid for the period during which the PAN remains inoperative. Additionally, tax deducted at source (TDS) may be charged at a higher rate, and tax collected at source (TCS) may also be collected at a higher rate. The user manual emphasizes that if your Aadhaar is already linked, Aadhaar number will be displayed, while if Aadhaar is not linked, 'Link Aadhaar Status' is displayed, highlighting the immediate impact of non-compliance.
The linking process involves two main steps as detailed in the latest user manual. Taxpayers can pay the required fee through the e-filing portal by selecting 'Link Aadhaar' under Quick Links, entering PAN and Aadhaar details, and choosing the applicable tax year. The ₹1,000 fee for delay in linking PAN with Aadhaar is pre-filled, and taxpayers can complete payment using available payment options. After successful payment, taxpayers can submit their PAN-Aadhaar linking request through either pre-login mode or post-login mode in the profile section. The manual provides detailed step-by-step instructions for both post-login and pre-login submission methods, ensuring taxpayers have clear guidance for the entire process.
Taxpayers can check their linking status through the e-filing portal by selecting 'Link Aadhaar/View Status' under Quick Links or on the dashboard after logging in, according to Mint. They must enter PAN and Aadhaar numbers and click 'View Link Aadhaar Status' to see whether the linking is successful, pending verification, or requires further action. The user manual provides comprehensive guidance on error handling, including situations where Aadhaar and PAN are already linked or PAN is linked to some other Aadhaar. If validation fails, taxpayers must click 'Link Aadhaar' on the status page and repeat the linking steps. If the request is pending with UIDAI for validation, taxpayers need to check the status later, and may require contacting the Jurisdictional Assessing Officer for delinking if Aadhaar is linked with some other PAN.
