Can You File ITR If PAN and Aadhaar Are Not Linked?
Yes. You can still file your Income Tax Return (ITR) even if your PAN is inoperative due to Aadhaar not being linked. However, there are critical consequences you must understand—especially if you’re expecting refunds or have high-value transactions.
This blog breaks down the compliance rules, CBDT clarifications, and filing tips for AY 2025–26.
What CBDT Says on PAN-Aadhaar Linking and ITR Filing
The Central Board of Direct Taxes (CBDT), via press releases and FAQs (most recently updated in March 2024), clarified:
- You can file your ITR with an inoperative PAN.
- But returns will not be processed unless your PAN is operative (i.e., linked to Aadhaar).
- This rule flows from Section 139AA(2) of the Income-tax Act, 1961.
Key reference:
CBDT Circular dated 28 March 2023
What Happens If You Don’t Link PAN and Aadhaar?
| Impact Area | If PAN is Inoperative |
|---|---|
| Filing ITR | Allowed |
| Processing of ITR (refunds, intimation) | Not allowed |
| TDS credit claim | Blocked in 26AS / AIS until PAN is operative |
| Opening bank accounts | May be rejected |
| Deducting TDS at normal rates | Deducted at higher rate u/s 206AA |
| Applying for loans or credit cards | PAN is treated as invalid, delays expected |
How to Link PAN with Aadhaar Now?
You can still link it online with a late fee of ₹1,000 under Rule 114(4).
Steps to Link:
- Pay ₹1,000 challan via TIN-NSDL
- Visit e-Filing Portal
- Go to “Link Aadhaar” and complete the process
Note: PAN becomes operative again within 30 days of successful linking.
Expert Tip: File First, Link Fast
If you’re short on time before the ITR deadline:
- File your return now, especially if your income is taxable.
- Link PAN-Aadhaar soon after to avoid return rejection or refund delay.
For salaried or small business taxpayers, don’t risk non-filing just because PAN is inoperative.
Who Is Exempt From Linking PAN and Aadhaar?
As per Notification No. 37/2017:
- NRIs (Non-Resident Indians)
- Residents of Assam, Meghalaya, J&K
- Individuals aged 80+ years
- Those not required to have Aadhaar under Aadhaar Act
No late fee or linking needed for these categories.
When Should You Not Delay?
Linking PAN-Aadhaar becomes critical if:
- You’re expecting a refund
- You’re selling property or mutual funds
- You’re deducting or receiving TDS
- You want to avoid scrutiny under high-value transactions
Quick Recap: Filing ITR Without Linking Aadhaar
| Situation | Allowed? | Action Needed |
|---|---|---|
| File ITR with inoperative PAN | ✅ Yes | File before deadline |
| Get refund or ITR processed | ❌ No | Link PAN-Aadhaar to activate PAN |
| Avoid higher TDS | ❌ No | PAN must be operative |
| Facing late filing fee under 234F | ✅ Yes | Pay and file even if PAN inoperative |
FAQs on Filing ITR Without PAN-Aadhaar Link
Q1. Will my ITR be considered valid if PAN is inoperative?
Yes, but it will remain unprocessed until PAN is linked with Aadhaar.
Q2. Will I get refund if PAN is inoperative?
No. Refunds are issued only after your PAN is made operative.
Q3. What if I link PAN-Aadhaar after filing ITR?
Your return will be processed after PAN becomes operative. No need to re-file.
Q4. How much is the penalty for not linking?
₹1,000 under Section 234H of the Income-tax Act.
Conclusion: Link Aadhaar, But Don’t Delay ITR
Filing ITR without linking Aadhaar is legally allowed, but it’s incomplete compliance. Refunds, verifications, and TDS credits are all stalled if your PAN is inoperative.
Don’t wait. File now. Link soon. Let Efiletax handle the rest.
📲 Need help filing your ITR or linking Aadhaar?
Visit Efiletax.in and get expert assistance today.
Summary
You can file your ITR even if your PAN is inoperative due to non-linking with Aadhaar. But your return won’t be processed until PAN is linked. Learn the rules, consequences, and action plan.