ITR
Why PAN-Aadhaar linking still matters in 2026
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Facts
Yes. An unlinked PAN stays inoperative until linked, with no refunds, higher TDS and TCS, and KYC problems. Linking is still allowed with the ₹1,000 fee under Sec 430 of the Income-tax Act 2025 (old Sec 234H).
Provisions and law
- Sec 262, Income-tax Act 2025 (old Sec 139AA)PAN and Aadhaar linking requirement continues under the new Act
- Sec 430, Income-tax Act 2025 (old Sec 234H)Fee of ₹1,000 for intimating Aadhaar after the prescribed date
- CBDT Circular No. 03 of 2023From 1 July 2023 an inoperative PAN gets no refund, no interest on refund, and higher TDS and TCS
Analysis
The cost of staying unlinked usually exceeds the fee. Example: ₹1 lakh of FD interest with 10% extra TDS means ₹10,000 locked until refund, plus any refund held without interest. Paying ₹1,000 and linking ends this. The requirement continues under the 2025 Act.
Conclusion
- Check status
- Pay ₹1,000 through e-Pay Tax under minor head 500
- Submit the link request with OTP
- Confirm operative status and inform deductors
A Savvy can do this for you
PAN-Aadhaar linking with late fee, Sec 262 and 430 (old 139AA and 234H)
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