Why Checking Your PAN–Aadhaar Link Status Matters Today
Under Section 139AA of the Income Tax Act, 1961, every Indian taxpayer who has been allotted a Permanent Account Number (PAN) is legally required to link it with their 12-digit Aadhaar number. If your PAN card is not linked, the Income Tax Department marks your PAN as "Inoperative".
An inoperative PAN is treated as if you had not given a PAN at all. Your employer, bank or client must then deduct TDS at a higher rate — generally 20%, or twice the normal rate if that is higher — instead of the usual 1% to 10%.