Quoting and Linking of Aadhaar Number
Introduction
Aadhaar, a 12-digit unique identification number, is mandatory for quoting in Income Tax Returns (ITRs) and PAN applications. Aadhaar can replace PAN for specific purposes. PANs allotted before 01-10-2024 using Aadhaar Enrolment ID must be updated with Aadhaar by 31-12-2025.
Eligibility for Aadhaar
- Any resident who has stayed in India for 182 or more days in the preceding 12 months.
- Non-Resident Indians (NRIs) with valid Indian passports can apply immediately upon arrival in India.
PAN-Aadhaar Linking Requirements
- All PAN holders as of July 1, 2017, who are eligible for Aadhaar, must link the two till 31-03-2022.
- Failure to link renders PAN inoperative, but linking is allowed thereafter with a fee underSection 234H.
- An inoperative PAN linked with Aadhaar after 31-03-2022 becomes operative within 30 days of intimation.
Consequences of Inoperative PAN
- Higher TDS/TCS rates apply (Sections 206AA,206CC).
- No refund of any tax or part thereof shall be made.
- No interest on refund is payable for the period from 01-07-2023 until the date the PAN becomes operative.
Exemptions from Aadhaar Linking
Applicable only if Aadhaar is not possessed:
- Residents of Assam, Jammu & Kashmir, and Meghalaya.
- Non-residents under the Income-tax Act.
- Individuals aged 80 or above during the financial year.
- Non-citizens of India.
Interchangeability of Aadhaar and PAN
Aadhaar can substitute PAN for specified transactions under Section 139A(5E). Aadhaar can be used to instantly obtain PAN via the e-filing portal without submitting additional documents.
Mandatory quoting of Aadhaar in ITR and PAN application
Quoting Aadhaar in ITR and PAN application is compulsory. If Aadhaar is not available, Enrolment ID can be used—but only till 30.09.2024. From 01.10.2024, only Aadhaar number will be accepted. Anyone allotted a PAN before 01.10.2024 using an Aadhaar Enrolment ID must link his Aadhaar by 31.12.2025. [Notification No. 26/2025, dated 03-04-2025]