ITR

Why PAN-Aadhaar linking still matters in 2026

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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

Sec 262, Income-tax Act 2025 (old Sec 139AA); Sec 430, Income-tax Act 2025 (old Sec 234H); CBDT Circular No. 03 of 2023

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.

Close

  1. Check status
  2. Pay ₹1,000 through e-Pay Tax under minor head 500
  3. Submit the link request with OTP
  4. Confirm operative status and inform deductors

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