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Ensuring Financial Compliance: The Importance of Linking PAN with Aadhaar

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  • Post published:December 19, 2023
  • Post category:General


Importance of Linking PAN with Aadhaar

In a significant move towards financial transparency and compliance, the Central Board of Direct Taxes (CBDT) has mandated linking PAN (Permanent Account Number) with Aadhaar for all individuals, excluding those falling under the exempt category. Failing to comply with this directive by the June 30, 2023, deadline will render the PAN card inoperative. This article explores the implications of an inoperative PAN, the prerequisites and steps to check PAN status, and the process to link PAN with Aadhaar.

Checking PAN Card Status: (Valid or Invalid)

To check the status of your PAN card, individuals need the following prerequisites:

1. PAN number
2. Valid mobile number

Follow these steps to verify the status:

1. Visit the Income Tax e-filing website.
2. Click on the ‘Verify Your PAN’ option under the ‘Quick Links’ heading.
3. Enter PAN, name, date of birth, and mobile number; then click ‘Continue.’
4. Enter the OTP received on the mobile and click ‘Validate.’
5. The PAN status will be displayed.

Consequences of an Inoperative PAN:

An inoperative PAN has severe repercussions on financial transactions. Individuals with an inoperative PAN cannot engage in activities such as opening accounts, applying for credit and debit cards, or making certain cash transactions exceeding Rs.50,000. Additionally, higher tax deductions are applicable for specific financial transactions when the PAN is inoperative, including the sale or purchase of motor vehicles, immovable property, and goods or services exceeding specified amounts.

Linking PAN with Aadhaar:

To make an inoperative PAN operative again, individuals must follow these steps to link PAN with Aadhaar after paying a penalty of Rs.1,000:

1. Visit the Income Tax e-filing website.
2. Click on the ‘e-Pay Tax’ option under ‘Quick Links.’
3. Enter PAN and mobile number, and click ‘Continue.’
4. Enter OTP and click ‘Continue.’
5. Proceed to pay the penalty under the ‘Income Tax’ tab.
6. After payment, click on ‘Link Aadhaar’ under ‘Quick Links.’
7. Enter your PAN and Aadhaar number, and validate by entering your name and mobile number.
8. Enter OTP and validate; the request for PAN-Aadhaar linking will be sent to UIDAI.

Checking PAN-Aadhaar Linking Status:

Follow these steps to check the status of PAN-Aadhaar linking:

1. Visit the Income Tax e-filing website.
2. Click on ‘Link Aadhaar Status’ under ‘Quick Links.’
3. Enter PAN and Aadhaar numbers; click ‘View Link Aadhaar Status.’
4. The PAN-Aadhaar linking status will be displayed.


Ensuring compliance with the CBDT notification is crucial to maintaining the functionality of your PAN card. Regularly checking the status and promptly linking PAN with Aadhaar can prevent financial disruptions and legal consequences. Stay informed and follow the outlined procedures to secure the seamless operation of your PAN card in the financial landscape.


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