How-to PAN Aadhaar KYC

How to link PAN to Aadhaar for mutual fund KYC

From WebNotes, a public knowledge base. Last updated 19 May 2026. Reading time ~6 min.

Key facts

Time required	Under 10 minutes online
Late-linking fee	Rs 1,000 (post 30 June 2023 deadline)
Consequence of non-linking	PAN becomes inoperative; MF transactions blocked
Portal	Income Tax e-Filing (incometax.gov.in)

Procedure

Check linking statusVisit incometax.gov.in. On the home page, locate the Link Aadhaar Status quick link. Enter PAN and Aadhaar; the portal returns whether the two are already linked.
Pay late-linking fee if applicableIf PAN was not linked by 30 June 2023, the Rs 1,000 late-linking fee under Section 234H of the Income Tax Act applies. Pay via the e-Filing portal: Pay Now > Continue Linking PAN-Aadhaar. Use net banking, debit card, or UPI.
Initiate linkingAfter payment confirmation (or directly if no fee due), click Link Aadhaar on the e-Filing portal home page or under Profile > Link Aadhaar.
Enter PAN and AadhaarEnter your PAN, Aadhaar number, and the name as on Aadhaar. Tick the consent to validate Aadhaar details.
Verify via OTPAn OTP is sent to the mobile registered with Aadhaar. Enter the OTP to validate.
Submit and confirmSubmit the request. The portal returns a success message. The status updates within a few hours; the official PAN-Aadhaar linkage is processed at UIDAI’s backend.
Verify the cascadeAfter 24-48 hours, recheck status on incometax.gov.in. KRA portals also reflect the updated PAN-Aadhaar linkage; AMC folio records refresh by next trading day.

Linking PAN to Aadhaar is mandatory for mutual fund KYC validity. The 30 June 2023 deadline has passed; non-linked PANs are now inoperative for income tax purposes, including mutual fund transactions. The late-linking fee of Rs 1,000 applies for PAN-Aadhaar linkages done after that date.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with the Income Tax Department, UIDAI, or any AMC. No affiliate commission is earned from PAN-Aadhaar linking.

Step-by-step procedure

See the procedure infobox above.

Why linking matters for mutual funds

Under Section 139AA of the Income Tax Act:

PAN must be linked to Aadhaar for the PAN to remain operative.
CBDT notifications since 2023 treat unlinked PAN as inoperative.
Inoperative PAN means:
- AMC blocks new subscriptions, SIP installments, switches, redemptions on existing folios.
- TDS deducted at higher rates (typically 20% for non-PAN dividends).
- No capital gains statement generated at year-end.

Name-mismatch handling

If your PAN name differs significantly from Aadhaar name (e.g., due to marriage), the e-Filing portal may reject the link. Update either PAN (via Income Tax PAN correction ) or Aadhaar (via UIDAI) to bring them into alignment before re-attempting.

Reactivation of inoperative PAN

If your PAN is currently inoperative due to non-linking:

Pay the Rs 1,000 fee.
Submit the linking request as above.
PAN status updates from inoperative to operative within 30 days.
After PAN is operative, mutual fund transactions resume.

KRA cascade

Once PAN-Aadhaar is linked at the Income Tax department, the KRAs (which cross-check PAN against the IT database) automatically refresh. No separate update at the KRA is needed.

External references

References

Income Tax Act, 1961, Section 139AA (PAN-Aadhaar linking) and Section 234H (late-linking fee).
CBDT Circular No. 7/2022 dated 30 March 2022 (extension of PAN-Aadhaar linking).
CBDT Notification on PAN inoperative consequences (effective 1 July 2023).
SEBI Master Circular for KYC dated 12 October 2023.
AMFI Best Practice Guidelines on PAN validation.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 19 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.