No late fee for these taxpayers for linking PAN-Aadhaar till December 31

New Delhi: Ministry of finance has clarified that PAN (Permanent Account Number) can be linked to Aadhaar without paying late fee if application for Aadhaar was filed before October 1 last year. This linking, however, must be completed before December 31 of this year.

There are scores of taxpayers who got their PAN based on enrolment ID of aadhaar application form filed last year. This latest announcement is meant for these taxpayers only.

Also Read: Over 3.24 lakh individuals filed tax returns till March 31 

Central Board of Direct Taxes (CBDT) on April 3, 2025 issued a circular which highlights that every individual who was allotted PAN on the basis of Enrolment ID of Aadhaar application form filed prior to Oct 1, 2024, is meant to intimate his Aadhaar number to the income tax authorities i.e., Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the said authorities.

Every person who has been allotted permanent account number on the basis of Enrolment ID of Aadhaar application form filed prior to October 1 last year will intimate his/her Aadhaar number to the Principal Director General of Income Tax (Systems) or Director General of Incometax (Systems) or the person authorised by the said authorities on or before the 31st day of December, 2025 or such date as may be specified by the Central Board of Direct Taxes in this behalf.

It is vital to note that this extension of December 31 is applicable only for those cases where PAN was allotted on the basis of aadhaar enrolment IDs. A liberal time period has been allowed till Dec 31, 2025 to such persons for linking PAN and Aadhar. This liberal regime has to be seen in the context of ‘Trusting the Taxpayer’.

Linking of PAN to aadhaar – in usual circumstances – invites a late fee of Rs 1,000. These include the cases where PAN and aadhaar IDs existed but were not linked. And those who have yet not linked their PAN to aadhaar face the risk of PAN becoming inoperative. And any refunds and interest thereon will not be paid.