PAN-Aadhaar Card Link Deadline Nears: Who Is Exempt and Who Still Needs To Link, Check Details

Mumbai, December 29: As the December 31, 2025, deadline for mandatory PAN-Aadhaar linking is approaching, many individuals remain uncertain about their obligations. While the majority of resident taxpayers were required to link their Aadhaar Card to PAN Card, specific categories of individuals are statutorily exempt from this mandate. Understanding these exemptions is vital to avoid potential financial disruptions and ensure compliance with India's tax regulations.

The mandate to link PAN with Aadhaar stems from Section 139AA of the Income Tax Act, 1961. Introduced to curb tax evasion, broaden the tax base, and create a robust database for financial transactions, the linking initiative aimed to streamline tax administration. The Central Board of Direct Taxes (CBDT) had extended the deadline multiple times, with the final opportunity for Aadhaar Card and PAN Card linking concluding on December 31. Forgot Your PAN? Income Tax India Explains How To Retrieve Permanent Account Number Using Aadhaar Card.

Who is Exempt from Linking?

Non-Resident Indians (NRIs):

Individuals classified as Non-Resident Indians (NRIs) are exempt from the mandatory linking of PAN and Aadhaar. This exemption acknowledges that Aadhaar is primarily intended for residents of India, and NRIs typically do not meet the residency criteria for Aadhaar enrollment. However, if an NRI voluntarily obtained an Aadhaar card while residing in India, they would still fall under the exemption category as long as they maintain their NRI status.

Individuals Aged 80 Years or More:

Senior citizens who are 80 years of age or older at any time during the previous year are exempt from the linking requirement. This exemption provides relief to the elderly population from navigating the digital linking process. PAN-Aadhaar Linking Ends December 31: Process to Link Online and Consequences of Missing the Deadline.

Non-Citizens:

Foreign nationals and individuals who are not citizens of India are exempt from linking their PAN with Aadhaar. Similar to NRIs, Aadhaar is an identification document for Indian residents and citizens.

Residents of Specific States:

Individuals residing in the states of Assam, Jammu & Kashmir, and Meghalaya are also exempt from the mandatory PAN-Aadhaar linking. This exemption was granted due to specific regional considerations.

Joint Holders:

The PAN-Aadhaar linking requirement applies to individual PANs. In the case of joint accounts, the operational status of each individual's PAN is crucial for transactions where their PAN is required. If a joint holder's PAN becomes inoperative due to non-linking, it could impact transactions that require their active PAN.

How to Link Aadhaar Card to PAN Card

• Visit the Income Tax e-filing portal
• Click on “Link Aadhaar” under the quick links section
• Enter your PAN number
• Enter your Aadhaar number
• Enter your name exactly as mentioned on Aadhaar
• Submit the details
• Complete OTP verification if required

Consequences of an Inoperative PAN

For individuals who were mandated to link their PAN-Aadhaar but failed to do so, the consequences of an inoperative PAN are significant. These include:

• Higher Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) rates.
• Inability to file Income Tax Returns (ITR).
• Inability to process tax refunds.
• Restrictions on various financial transactions, such as opening new bank accounts, investing in mutual funds, or transacting in property.

What to Do If Your PAN is Inoperative

If a non-exempt individual's PAN has become inoperative, it can be reactivated by paying the prescribed penalty (INR 1,000 as of the last update) and subsequently linking it with Aadhaar through the Income Tax e-filing portal. Once the linking process is complete and verified, the PAN will become operative again, typically within a few days.

Understanding these exemptions and the implications of an inoperative PAN is crucial for ensuring smooth financial operations and compliance within India's tax framework. Individuals are encouraged to verify their linking status and eligibility for exemptions through official government channels.

(The above story first appeared on LatestLY on Dec 29, 2025 03:42 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).