PAN-Aadhaar Linking and Inoperative PAN: 2026 Guide
Linking PAN with Aadhaar is mandatory under section 139AA for everyone who has been allotted both, unless specifically exempt. CBDT set 31 December 2025 as the deadline for the remaining categories of PAN holders, and unlinked PANs became inoperative from 1 January 2026 - right before this filing season.
How to check your PAN-Aadhaar status
- Visit the e-filing portal and click Link Aadhaar Status under Quick Links (no login required).
- Enter PAN and Aadhaar number and click View Link Aadhaar Status.
- You can also check after logging in via Dashboard > Link Aadhaar Status, or by sending an SMS in the format UIDPAN to 567678 or 56161.
How to link PAN with Aadhaar on the incometax.gov.in e-filing portal
The whole process is online and follows the department's Link Aadhaar user manual:
- Go to incometax.gov.in and first confirm the current position via Quick Links > Link Aadhaar Status. If it already shows "linked", nothing more is needed.
- If not linked, click e-Pay Tax under Quick Links, enter your PAN (twice) and mobile number, and verify with the OTP.
- Choose Income Tax > Proceed, select assessment year and the payment type "Other Receipts (500)" - the fee for delay in linking PAN with Aadhaar of Rs. 1,000 under section 234H - and pay by net banking, debit card, UPI or over the counter.
- Wait for the challan to reflect on the portal (usually a few hours; up to 4-5 working days for some bank modes).
- Click Link Aadhaar under Quick Links (or after login, from your profile), enter PAN and Aadhaar number, and click Validate. The portal picks up the fee payment automatically.
- Enter your name and mobile number as per Aadhaar, tick the consent boxes and confirm with the OTP sent to your Aadhaar-registered mobile.
- The request goes to UIDAI for validation. Track it through Link Aadhaar Status; once successful, the PAN becomes operative within up to 30 days of the intimation.
- If validation fails because name, date of birth or gender differ between PAN and Aadhaar, correct the record first - Aadhaar updates are done through UIDAI, PAN corrections through the PAN service providers - and then resubmit.
Operative vs inoperative PAN: what changes
| Situation | Operative PAN | Inoperative PAN |
|---|---|---|
| Income tax refunds | Issued normally with interest | Withheld; no interest for the inoperative period |
| TDS on FD interest | 10% under section 194A | 20% under section 206AA |
| TDS on property purchase (section 194-IA) | 1% of consideration | 20% when the seller's PAN is inoperative |
| TCS (e.g. foreign remittance, car purchase) | Normal rates | Higher rates under section 206CC |
| Form 15G/15H to avoid TDS | Accepted | Not accepted |
| Return processing | Normal | May be held up; demands harder to resolve |
| KYC for banks, mutual funds, brokers | Valid | Treated as if PAN not furnished |
Consequences of an inoperative PAN
- Refunds blocked: no income tax refund (and no interest on it) is issued for the period the PAN stays inoperative.
- Higher TDS/TCS: deductors must apply higher rates under sections 206AA and 206CC - typically 20% on interest, rent, property purchases and other payments.
- Filing and processing issues: pending returns may not be processed, defective-return issues are harder to resolve, and Form 15G/15H declarations are not accepted.
- Everyday finance: banks, mutual funds and brokers treat the holder as if PAN was not furnished, hitting KYC, large deposits and investments.
Examples
Refund of Rs. 32,000 stuck
Meena filed her AY 2026-27 return expecting a Rs. 32,000 refund, but her PAN became inoperative on 1 January 2026. The refund will not be released until she pays the Rs. 1,000 fee and her PAN becomes operative again.
FD interest TDS jumps
Rakesh earns Rs. 80,000 a year as FD interest. With an operative PAN the bank deducts 10% TDS (Rs. 8,000); with an inoperative PAN it must deduct 20% (Rs. 16,000) under section 206AA - and he cannot claim the refund until he links.
Property deal at 20% TDS
A buyer paying Rs. 60,00,000 for a flat normally deducts 1% TDS (Rs. 60,000) under section 194-IA. If the seller's PAN is inoperative, TDS becomes 20% - Rs. 12,00,000 - a major cash-flow shock at registration.
Linking just before the refund
Suresh pays the Rs. 1,000 fee on 10 June 2026 and submits the Link Aadhaar request the same day. His PAN can take up to 30 days to become operative - by mid-July - so he files his return now but knows the Rs. 21,500 refund will be released only after the PAN status changes.
Who is exempt from PAN-Aadhaar linking?
- Residents of Assam, Jammu & Kashmir and Meghalaya.
- Non-residents under the Income Tax Act (NRIs should still verify their residential status is correctly updated with the department).
- Individuals aged 80 years or more at any time during the year.
- Persons who are not citizens of India.
- Exempt persons can link voluntarily without any fee if they wish.
Common mistakes to avoid
- Submitting the Link Aadhaar request before the fee payment reflects. The portal rejects the request if the Rs. 1,000 challan under minor head 500 has not yet been credited - wait for the challan to appear, then validate.
- Paying under the wrong head. The fee must go through e-Pay Tax as "Other Receipts (500)"; a payment under self-assessment tax or another head will not be matched to the linking request.
- Mismatched demographics. Differences in name spelling, date of birth or gender between PAN and Aadhaar cause UIDAI validation failure; fix the records first (Aadhaar via UIDAI, PAN via the PAN service centres).
- Expecting instant reactivation. The PAN becomes operative within up to 30 days of intimation, not immediately - plan around refunds, property deals and large FDs.
- Using a mobile number not registered with Aadhaar. The final confirmation OTP goes only to the Aadhaar-registered mobile; update it with UIDAI first if it has changed.
- NRIs assuming they are automatically safe. Exemption depends on the department's records showing non-resident status; if the PAN database still shows "resident", the PAN can be marked inoperative - raise a request with the jurisdictional officer to update the status.
Documents to keep ready
- PAN card and Aadhaar card with matching name, date of birth and gender.
- Aadhaar-registered mobile number for OTP.
- Net banking / UPI / debit card to pay the Rs. 1,000 fee on e-Pay Tax.
- Challan receipt of the fee payment for your records.
Frequently asked questions
How do I check if my PAN is linked with Aadhaar?
Go to incometax.gov.in, click Link Aadhaar Status under Quick Links, enter PAN and Aadhaar and submit. The status appears instantly and no login is needed. You can also check by SMS: UIDPAN to 567678 or 56161.
What is the fee for linking PAN with Aadhaar now?
Rs. 1,000 under section 234H for those who missed the earlier deadlines. It is paid through e-Pay Tax on the portal under "Other Receipts (500)" before submitting the Link Aadhaar request.
What happens if my PAN becomes inoperative?
Refunds are withheld without interest, TDS/TCS apply at higher rates under sections 206AA/206CC, Form 15G/15H is not accepted, and banks and brokers treat you as if PAN was not furnished.
How long does PAN take to become operative again?
Up to 30 days from the date you intimate Aadhaar (i.e., submit the Link Aadhaar request after paying the fee). Plan ahead if a refund, property sale or large investment is coming up.
Can I file my ITR with an inoperative PAN?
Filing may go through, but processing and the refund stay held up while the PAN is inoperative, and higher TDS keeps being deducted in the meantime. Link first - ideally well before the 31 July 2026 due date.
Do exempt categories like NRIs have to pay the Rs 1,000 fee?
No. Residents of Assam, J&K and Meghalaya, non-residents, persons aged 80+ during the year and non-citizens are exempt from mandatory linking and from the fee. NRIs should make sure their residential status is updated in the department's records so the PAN is not wrongly marked inoperative.
Get expert-assisted filing
All India ITR can check your PAN status, complete the linking and fee payment, and make sure your refund is not held up by an inoperative PAN before filing. If higher TDS has already been deducted, we help you claim it back in your return - see also AIS/26AS mismatch guide.
Related current ITR guides
More AY 2026-27 tax guides
Save tax: Home loan benefits · NPS (80CCD) · Donations (80G) · Education loan (80E) · Interest income (80TTA/80TTB) · Form 15G/15H · Capital gains exemptions (54/54F/54EC)
Investors and traders: F&O and intraday tax · ESOP and RSU tax · Share buyback tax · Foreign income and Schedule FA · Gift tax (56(2)(x)) · HUF taxation
Calculators and tools: Income tax calculator · Advance tax calculator · 80C tax-saving calculator · NPS calculator · Gratuity calculator · EPF calculator · Crypto tax calculator · HRA calculator
Filing and compliance: Section 87A rebate · Marginal relief · Form 10-IEA · PAN-Aadhaar link · AIS and TIS · ITR-U updated return · Discard ITR and condonation · TDS on rent and property · Income Tax Act 2025
Sources reviewed
- Income Tax Department: Link Aadhaar user manual
- UIDAI: Update Aadhaar (fix name/DOB mismatches before linking)
- UIDAI: Unique Identification Authority of India - official portal
This guide is for general understanding. Deadlines and fee rules have changed several times through CBDT notifications; verify your own category and current status on the e-filing portal before relying on any date.
