Aadhaar card and PAN card linking: A step-by-step guide


Aadhaar has a 12-digit unique identification number and can empower you in many ways. It enhances security and trust in all transactions and makes it easy to carry out financial transactions and business.

Similarly, a PAN card is useful in the filing of IT returns, as well as in claiming tax deductions. Additionally, PAN card holders can avail of income tax benefits. This document also serves as a valid proof of identity.

Your Aadhaar and PAN are two essential documents for creating a sound financial portfolio. An Aadhaar card is essential for the authentication of a user and can prevent the creation of fake identities.

Who Does Not Need to Link Their PAN with Their Aadhaar Number?

1) Those who are not citizens of the country.

2) Those who are classified as non-resident Indians (NRIs).

3) Those who have attained the age of 80 years or more at any time last year.

Risks of Not Linking Aadhaar with PAN

Earlier, income tax returns could be filed without compulsory Aadhaar and PAN linking. In 2017, the government enforced the linking of the two documents. The initial deadline for PAN and Aadhaar linking was set as August 31, 2017, which was later extended to December 31 of the same year. The deadline was again extended to accommodate the growing bandwidth of digital users. 

The income tax department can impose a penalty of up to Rs. 10,000 for not having an active PAN. This fine will be imposed if the PAN becomes inoperative after the end of March 2023 due to non-linking with Aadhaar.

If your PAN and Aadhaar are not linked by the end of March 2023, then your PAN will be considered null and void. Once the PAN is deemed non-operative, you will be unable to carry out essential income-related activities such as filing returns, opening a bank account, applying for a passport, visa renewal, or opening a demat account.

What Do I Need to Link My Aadhaar and PAN?

You will need the following things to link these your Aadhaar and PAN:

  • A valid Aadhaar Card
  • A valid PAN card
  • An operational mobile number.

How to Link Aadhaar and PAN

India’s income tax department has released a straightforward guide to linking these two documents. Here are the steps:

1) Visit the income tax portal and go to the menu on the left. Click on the ‘Link Aadhaar’ option. This will open the page where you can enter your PAN and Aadhaar numbers, as well as your name as given in your Aadhaar card.

2) After submitting these details click on the link option. After a short verification prompt to confirm the details, the linking is completed. You may then proceed to check the Aadhaar and PAN link status.

3) Due to language differences and/or missed rectifications to a name change, there could be a mismatch between the name on your Aadhaar and PAN. In such cases, an Aadhaar OTP verification will ensure that this mismatch is bypassed to ensure the completion of document linking. 

An Alternative Method for Linking Aadhaar and PAN

Follow the steps below to link your Aadhaar and PAN:

1) Log into your account on the e-filing portal using your login ID and password. If you have forgotten your password, you can reset it on the same page. Additionally, if you have not registered yourself on the portal yet, you can register by following the guidelines on the website.

2) Once you have logged in, you will be requested to link your Aadhaar and PAN accounts. In case you do not receive this pop-up, click on the ‘profile settings’ option in your browser to enable pop-ups. 

3) Once you have clicked on ‘Link Aadhaar‘, enter the details and verify the existing information linked to your account. 

4) Once the verification is completed, enter your Aadhaar number and the captcha verification code as the final step. Click on ‘Link Now’ to link the documents. 

A popup will confirm that your Aadhaar and PAN have been successfully linked.

How to Link Aadhaar and PAN through SMS

You can also link your Aadhaar and PAN accounts via SMS. Send the following message to 567678 or 56161.

UIDPAN, followed by one space, your 12-digit Aadhar number, followed by another single space, and finally your 10-digit PAN.

UIDPAN<SPACE><12 digit Aadhaar ><Space><10 digit PAN>

An example is given below:

UIDPAN 121233223322 AAAAAE456E

Benefits of Linking Aadhaar and PAN Accounts

Linking Aadhaar and PAN has various benefits. 

1. Linking your Aadhaar and PAN will significantly reduce any chances of misusing fake PAN cards to hide income. This will prevent the misappropriation of funds and increase accountability.

2. The 12-digit Aadhaar ID is essential for all transactions such as property deals, opening bank accounts, business deals, and availing loans. The linking of PAN with Aadhaar will ensure that all your transaction details are safely stored in one place.

3. Users with more than one PAN account could potentially conduct illegal activities such as money laundering. Once the PAN and Aadhaar accounts are updated, the possibility of such activities is reduced drastically.

4. The linking of Aadhaar and PAN will also be beneficial for legal taxpayers in filing returns and other related activities.

Next Steps

Get your Aadhaar and PAN accounts linked immediately to avail maximum benefits. With your transactions secure, you can build a great financial portfolio. Get in touch with Piramal Finance to get started. Piramal can also guide you with any other finance-related concerns that you may have. Read more related blogs on the Piramal Finance website, or explore their financial products and services, such as personal loans, credit cards, and financial calculators.