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PAN-Aadhaar Link Status and Linking Guide by Income Tax Department to avoid higher TDS. Check here.

Streamlining Tax Processes: The Importance of Linking Aadhaar with PAN

In recent years, the Indian government has been putting in efforts to simplify and digitize various processes, including those related to income tax. A significant initiative in this direction is the Aadhaar-PAN linking system. This initiative aims to curb tax evasion and ensure accurate income reporting by individuals.

Why Linking Aadhaar and PAN is Crucial

The Aadhaar-PAN linking process is essential for several reasons:

  1. Preventing Multiple PANs: One of the primary objectives is to detect and eliminate cases where individuals possess multiple PANs. Multiple PANs can be used to conceal income or evade taxes. By linking Aadhaar with PAN, the Income Tax Department ensures that each individual has only one PAN, thereby facilitating the tracking of financial transactions more effectively.
  2. Seamless Tax Refunds and Processing: The linking is also critical for processing income tax returns and issuing tax refunds. If your Aadhaar and PAN are not linked, you may experience delays in receiving refunds or in the processing of your returns. This is because the Income Tax Department might face difficulties in accurately matching your details.

Avoid Higher TDS with Aadhaar-PAN Linking

The Income Tax Department has recently released a step-by-step guide to help individuals link their Aadhaar and PAN to avoid higher Tax Deducted at Source (TDS). TDS is the tax deducted by the employer or other income sources before issuing payment to an individual. If your Aadhaar and PAN are not linked, you might face higher TDS deductions due to the lack of accurate information about your income and tax liability.

Steps to Link Aadhaar and PAN

To link your Aadhaar and PAN, follow these simple steps provided by the Income Tax Department:

  1. Visit the official website of the Income Tax Department
  2. Click on the ‘Link Aadhaar’ option under the Quick Links section.
  3. Enter your PAN, Aadhaar number, and name as per Aadhaar.
  4. Verify the CAPTCHA code and click on ‘Link Aadhaar’.
  5. You will receive an OTP on your registered mobile number. Enter the OTP to complete the linking process.
  6. Once the linking is successful, you will receive a confirmation message on-screen.

Extended Deadlines and Immediate Action

The deadline for linking Aadhaar and PAN has been extended multiple times due to various reasons. However, it is advisable to link your Aadhaar and PAN as soon as possible to avoid higher TDS deductions and ensure smooth processing of income tax returns.

Detailed Guide by the Income Tax Department

Recently, the Income Tax Department issued a detailed guide to assist taxpayers:

  1. Visit the e-Filing Portal Home page and click on ‘Link Aadhaar’ in the Quick Links section, or log into the e-Filing portal and click on ‘Link Aadhaar’ in the Profile section.
  2. Enter your PAN and Aadhaar Number.
  3. Click on ‘Continue’ to Pay Through e-Pay Tax.
  4. Enter your mobile number to receive OTP.
  5. After OTP verification, you will be redirected to the e-Pay Tax page.
  6. Click on ‘Proceed’.
  7. Select the relevant Assessment Year and Type of Payment as ‘Other Receipts’ (500) and click ‘Continue’.
  8. After successful payment, revisit the ‘Link Aadhaar’ page.
  9. Once the payment details are verified, click ‘Continue’ to submit the PAN-Aadhaar link request.

Consequences of Not Linking Aadhaar and PAN

According to the CBDT circular dated April 23, 2024, failing to link Aadhaar with PAN can lead to several consequences:

  • Refunds of tax or part thereof will not be made.
  • Interest on refunds will not be payable.
  • Higher rates of TDS will apply.
  • Higher rates of tax collection at source will apply as per section 206CC.

Who Needs to Link Aadhaar and PAN?

As per Section 139AA of the Income Tax Act, individuals with a PAN assigned before July 1st, 2017, and eligible for an Aadhaar number, must disclose their Aadhaar number using the specified form and method.

Upcoming ITR Filing Deadline

The deadline for filing your Income Tax Returns (ITR) for the income earned in FY 2023-24 (AY 2024-25) is July 31, 2024, without incurring any late fees.


Linking your Aadhaar and PAN is a simple yet vital step in complying with income tax regulations and avoiding unnecessary hassles. By following the step-by-step guide provided by the Income Tax Department, you can ensure that your financial details are accurate and up-to-date, leading to a smoother tax filing process. Take the time to link your Aadhaar and PAN today to stay compliant and avoid any unnecessary penalties in the future.

Stay informed and ensure your tax affairs are in order by linking your Aadhaar and PAN promptly.

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