Is it free to link PAN and Aadhaar?

No. The free deadline passed years ago. You must now pay a mandatory late fee of ₹1,000 to link them.

What happens if I don't link them?

Your PAN becomes 'Inoperative'. You cannot file ITR, get tax refunds, or invest in mutual funds/stocks. Banks will also deduct higher TDS (20%).

⚡ Quick Summary: The Mandatory ₹1000 Linking

The deadline to link your PAN with Aadhaar for free ended on June 30, 2022. Currently, the Income Tax Department has made it mandatory to pay a late penalty of ₹1,000 to complete this process. If your PAN is not linked, it becomes "Inoperative." An inoperative PAN is dangerous for your financial health: you cannot file Income Tax Returns (ITR), your pending tax refunds will be stuck, and banks will deduct TDS at a higher rate of 20% instead of the usual 10% on your interest earnings.

The linking process is not instant anymore. First, you must pay the ₹1,000 fee via the "e-Pay Tax" service on the Income Tax Portal (selecting Assessment Year 2026-27 and Type of Payment: Other Receipts (500)). After making the payment, it takes about 4-5 working days for the payment to reflect in the government system. Only after this delay can you log in again and submit the final linking request.

Exemptions: You do not need to pay or link if you fall into specific categories: Residents of Assam, Jammu & Kashmir, or Meghalaya; Non-Residents (NRIs) as per the Income Tax Act; Citizens aged 80 years or above (Super Senior Citizens); or non-citizens of India. For everyone else, this guide provides the exact steps to pay the fine correctly and restore your PAN to "Active" status before your bank freezes your account.

Mandatory Action 8 Min Read

How to Link PAN with Aadhaar Online & Pay ₹1000 Penalty Correctly

The deadline has passed, and free linking is over. If your PAN is not linked to Aadhaar, it becomes "Inoperative." Follow this guide to verify your status, pay the challan, and link it via the Income Tax Portal.

Source: Income Tax Dept

Updated: Jan 2026

Warning: The "Free Link" Scam

Many SMS/Whatsapp messages claim: "Your PAN is blocked. Click here to link for FREE."

This is a Fraud. There is NO free way to link anymore. The government charges exactly ₹1,000. Any link asking for free KYC update is a phishing trap to steal your banking passwords.

Cost of NOT Linking (TDS Hit)

If your PAN is "Inoperative", banks are forced to deduct double tax.

Normal TDS (Active PAN) 10%

Inoperative PAN TDS 20% to 30%

Verdict: Paying ₹1,000 now saves you from losing thousands in higher taxes later.

Risk Alert: Is your PAN "Inoperative"?

If you don't link them, your PAN becomes practically useless. This means:

❌ Higher TDS: Banks will deduct 20% tax on your interest instead of the usual 10%.
❌ No Refunds: You cannot file ITR or claim any pending tax refunds.
❌ Investment Block: You cannot open new bank accounts or invest in Mutual Funds.

Requirements Checklist

✅ Matching Details: Name & DOB must match EXACTLY on both cards.
✅ ₹1000 Fee: Keep your Net Banking/UPI ready.
✅ Active Mobile: Linked to Aadhaar for OTP.

Interactive Checklist

I have checked my status is 'Not Linked'. My Name spellings match perfectly.

1 Step 1: Pay the ₹1000 Penalty (Most Crucial)

You cannot link without paying first. This is where most people make mistakes. Follow these steps carefully to pay Challan 280 correctly.

1
Go to e-Pay Tax

Visit the Income Tax Portal. Under 'Quick Links' on the left side, click on e-Pay Tax.
2
Enter PAN Details

Enter your PAN number twice and your mobile number. Verify using the OTP sent to your mobile.
3
Select 'Income Tax' Tile

You will see different payment tiles. Click "Proceed" on the first tile that says Income Tax.
4
Select Correct Year & Type (Don't mess this up!)
- Assessment Year: Select 2026-27 (or the latest available for current FY).
- Type of Payment: Select Other Receipts (500).
- Sub-Type: Select Fee for delay in linking PAN-Aadhaar.
5
Make Payment

The amount will auto-fill as ₹1000. Pay using UPI, Net Banking, or Debit Card. Download the Challan Receipt immediately.

2 Step 2: Submit Linking Request

Wait! After paying, wait for 2-3 working days for the payment to reflect in the government system. Then follow these steps:

1. Go to 'Link Aadhaar'

Visit the Income Tax Portal again. Click on "Link Aadhaar" under Quick Links.

2. Validate Payment

Enter PAN and Aadhaar again. The system will find your ₹1000 payment and show a popup: "Your payment details are verified".

3. Enter Name

Enter your Name as per Aadhaar and Mobile Number. Agree to terms and submit OTP.

4. Success!

You will see a message: "Your request has been sent to UIDAI for validation." Status will update in 48 hours.

Crucial Mistakes to Avoid

🚫
Wrong Assessment Year:
Users often select the wrong year in challan. Always select 2026-27 (or Current AY). If you pay for the wrong year, you won't get a refund!
🚫
Ignoring Name Spelling:
If PAN says "Ramesh Kumar" and Aadhaar says "Ramesh K", linking will FAIL. You must update Aadhaar first at a center or online.

Frequently Asked Questions

Can I get a refund if I pay twice?

No. The Income Tax Department states that challan payments are non-refundable. Be very careful while selecting the Assessment Year.

How long does it take to become operative again?

Once you submit the linking request successfully, it typically takes about 30 days for the PAN to become operative again.

Is it free for senior citizens?

Exemption applies ONLY to citizens aged 80+ years (Super Senior Citizens). All others (including those aged 60-80) must pay the ₹1000 penalty.