Who Is Exempt From PAN-Aadhaar Linking? What NRIs, Seniors, Minors And Joint Holders Must Know

Aadhaar PAN Link Status: As the December 31 deadline for PAN-Aadhaar linking approaches, confusion persists among taxpayers about who is actually required to complete the exercise and who is legally exempt. While linking PAN with Aadhaar is mandatory for most individuals, the Income Tax Act provides clear exceptions for specific categories.

Who is exempt from PAN-Aadhaar linking?

Certain individuals are not required to link their PAN with Aadhaar. These include non-resident Indians (NRIs) who do not qualify as residents under the Income Tax Act, individuals who do not possess an Aadhaar number, and those specifically exempted by the government. In addition, people aged 80 years or above (super senior citizens) are not mandated to complete PAN-Aadhaar

linking. Residents of Assam, Meghalaya and Jammu & Kashmir are also exempt under existing rules.

What if Aadhaar is not mandatory for you

A key nuance often missed is that PAN-Aadhaar linking is compulsory only if Aadhaar is applicable to you. If Aadhaar enrolment itself is not mandatory in your case — for instance, for certain NRIs or exempted residents — the PAN does not become inoperative for non-linking. However, if Aadhaar has been issued to you, linking becomes mandatory even if Aadhaar was obtained voluntarily.

PAN-Aadhaar rules for joint holders

PAN-Aadhaar linking is an individual-level requirement. In joint bank accounts, joint demat accounts or joint investments, each PAN holder must independently comply with the linking requirement. If one holder’s PAN becomes inoperative, transactions linked to that PAN may face restrictions, even if the other holder’s PAN is fully compliant.

What about minors

Minors who have been allotted a PAN are not required to link it with Aadhaar until they become adults. Once a minor turns 18 and Aadhaar becomes mandatory, PAN-Aadhaar linking must be completed to avoid the PAN becoming inoperative.

PAN-Aadhaar linking for deceased persons

PAN-Aadhaar linking is not required for deceased individuals. If the PAN belongs to a person who has passed away, family members or legal heirs are not required to complete the linking. However, the PAN should ideally be surrendered through the prescribed process to avoid future compliance issues.

Who needs to link Aadhaar and PAN?

Section 139AA of the Income Tax Act provides that every individual who has been allotted a permanent account number (PAN) as on the 1st day of July, 2017, and who is eligible to obtain an Aadhaar number, shall intimate his Aadhaar number in the prescribed form and manner. Your PAN will become inoperative if you do not link it with Aadhaar till 30th June 2023. However, people who fall under the exempted category will not be subject to the effects of PAN becoming inoperative.