If your PAN was allotted on the strength of an Aadhaar enrolment ID rather than an Aadhaar number, you had to link the actual Aadhaar number by 31 December 2025. CBDT Notification 26/2025 set that date. Miss it and the PAN became inoperative from 1 January 2026. That deadline has now passed, so if this applies to you, treat it as a repair job rather than a deadline.
For everybody else, the original obligation ran under section 139AA. Anyone holding a PAN as on 1 July 2017 who was eligible for Aadhaar had to link by 30 June 2023. Unlinked PANs went inoperative from 1 July 2023. Restoring one costs ₹1,000.
What are the PAN and Aadhaar linking rules?
| Rule | Figure or date | Applies to | Statutory source |
|---|---|---|---|
| Duty to intimate Aadhaar | Mandatory | PAN holders as on 1 July 2017 who are eligible for Aadhaar | Section 139AA, Income-tax Act 1961 |
| Original linking deadline | 30 June 2023 | Those PAN holders | Income Tax Department, Link Aadhaar FAQ |
| PAN inoperative from | 1 July 2023 | Unlinked PANs | Same FAQ |
| Fee to link or restore | ₹1,000 | Late linking, and voluntary linking by exempt persons | Same FAQ |
| PAN allotted via Aadhaar enrolment ID | Link by 31 December 2025 | Those PANs; inoperative from 1 January 2026 | CBDT Notification 26/2025 |
| Higher TDS on an inoperative PAN | Rate under section 206AA | Payments to the PAN holder | Section 206AA |
| Higher TCS on an inoperative PAN | Rate under section 206CC | Collections from the PAN holder | Section 206CC |
Who does not have to link PAN with Aadhaar?
The Income Tax Department’s own FAQ lists four exempt categories.
- Residents of Assam, Jammu and Kashmir, and Meghalaya.
- Non-residents under the Income-tax Act, 1961.
- Anyone aged 80 years or more during the previous year.
- Anyone who is not a citizen of India.
Two things trip people up here. Residence is judged under the Act, not by where you feel you live, so read NRI taxation before assuming you qualify. And exemption is not automatic in the department’s records. Many non-residents find their PAN marked inoperative anyway, because the department has no way of knowing their status until it is updated.
What actually breaks when your PAN goes inoperative?
Four things, per the department’s FAQ.
- No refund of tax is made while the PAN is inoperative.
- No interest is paid on that refund for the period it stays inoperative.
- Tax is deducted at the higher rate under section 206AA.
- Tax is collected at the higher rate under section 206CC.
Note what is not on that list. The PAN is not cancelled, and it is not invalid. You can still file a return. The damage is financial and it is silent. Higher TDS is taken by a payer who may never tell you why, and the refund that would have corrected it is held back at the same time. Check your Form 26AS if the deducted amount looks wrong, and read TDS rates for the normal figures.
How do you link or restore a PAN now?
The route is on the income tax e-filing portal. Pay the ₹1,000 fee first, under the e-Pay Tax option, then submit the linking request. The two steps are separate, and a request submitted before the payment clears will fail.
The PAN does not turn operative the moment you pay. The department processes the request and updates the status. Check the status on the portal rather than assuming, and do not file a refund claim expecting it to be released before the status flips.
If your Aadhaar and PAN carry different spellings of your name, or different dates of birth, the link will not go through. Fix the mismatch first, on whichever document is wrong. That correction is the slow part, so start it early if a filing deadline is close. Our guide to filing your ITR covers what else has to be in place.
How is TAN different from PAN?
They are not the same number and they are not interchangeable. PAN identifies a taxpayer. TAN is the Tax Deduction and Collection Account Number, and it identifies a person who deducts or collects tax.
The obligation to obtain and quote a TAN sits in section 203A of the Income-tax Act. The application is made in Form 49B. Failure to obtain one, or quoting it wrongly, is penalised under section 272BB. We are not quoting a penalty amount here, because we could not open the department’s current page for it; check the section text before you rely on a figure.
In practice you need a TAN if you deduct TDS. That catches more individuals than people expect, including some who pay rent above the threshold or buy property, though certain such deductions are allowed against PAN instead. Confirm which applies to your transaction before you apply for a TAN you do not need.
Frequently asked questions
How do I check whether my PAN and Aadhaar are linked?
Use the Link Aadhaar Status option on the income tax e-filing portal. It works without logging in. Check the status itself rather than relying on the fee payment receipt, because payment and linking are two separate steps.
Can I file an income tax return with an inoperative PAN?
You can file. What you cannot do is receive the refund. The department’s FAQ says no refund is made while the PAN is inoperative, and no interest accrues on it for that period. Tax is also deducted at the higher rate under section 206AA meanwhile.
Do NRIs need to link PAN with Aadhaar?
No. Non-residents under the Income-tax Act are in the exempt category. Many still find their PAN flagged inoperative, because the department cannot see the change in status. Update your residential status with the department and raise the issue on the portal if it happens.
What is the fee to link PAN and Aadhaar now?
₹1,000. The same amount applies to restoring an inoperative PAN and to a voluntary link by someone in an exempt category. Pay it through e-Pay Tax on the portal before submitting the linking request.
My name is spelt differently on PAN and Aadhaar. What do I do?
Correct one of them first. The link fails on a mismatch of name, date of birth or gender. Decide which document is wrong, get it changed at source, and then submit the linking request. Allow time, because this is the step that takes weeks.
Sources
- Income Tax Department, Link Aadhaar FAQ — incometax.gov.in
- Central Board of Direct Taxes, Notification 26/2025, on PANs allotted using an Aadhaar enrolment ID
- Income-tax Act, 1961 — sections 139AA, 203A, 206AA, 206CC and 272BB
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