Income tax dept says last date to link PAN and Aadhaar card free is Dec 31: Step-by-step guide

The Ministry of Finance has issued a new directive stating that the PAN card can be linked to Aadhaar without paying a late fee, provided that the application for Aadhaar was filed before October 1, 2024. The last date to complete the linking process is Dec 31, 2025. This announcement has been made for taxpayers who had their PAN based on the enrolment ID of the Aadhaar application form submitted last year.

On April 3, the Central Board of Direct Taxes (CBDT) issued a circular stating that individuals who were allotted a PAN based on the Enrolment ID provided in their Aadhaar application form submitted before October 1 2024, are required to inform the income tax authorities of their Aadhaar number.

Authorities include the Principal Director General of Income-tax (Systems), Director General of Income-tax (Systems), or the person authorised by the said authorities. After this, an explanation came from the ministry clarifying that this intimation should be done by the end of the current calendar year.

"Every person who has been allotted a permanent account number based on the Enrolment ID of the Aadhaar application form filed prior to 1 October 2024, shall intimate their Aadhaar number,” the notification said.

It is important to note that this extension has been provided only for those cases where PAN was allotted on the basis of Aadhaar enrolment IDs. A senior tax official said no late fees have been prescribed for such cases. The official also said that this liberal regime aligns with the approach of ‘Trusting the Taxpayer’.

Late fee

After the December 31 deadline, linking the PAN with Aadhaar card would attract a late fee of ₹1,000. This will include cases where PAN and Aadhaar IDs exist but have not been linked. Additionally, those who have not linked their PAN and Aadhaar face the risk of their PAN becoming inoperative.

Steps to link your PAN with Aadhaar

• Visit the e-Filing Portal and click on ‘Link Aadhaar’ in the Quick Links section on the left.
• Enter your PAN and Aadhaar number and click on ‘Continue’ to pay through e-Pay Tax.
• Enter your mobile number to receive an OTP, after which you will be redirected to the e-Pay Tax page.
• Click on ‘Proceed’.
• After this, select the relevant Assessment Year and the type of payment as ‘Other Receipts’ (500).
• Click ‘Continue’ and, after successful payment, revisit the ‘Link Aadhaar’ page.
• Verify your details and click ‘Continue’ to submit the PAN-Aadhaar link request.