As per the government of India’s tax compliance rules, linking your Permanent Account Number (PAN) with your Aadhaar is mandatory — and the deadline of 31 December 2025 is now fast approaching. Missing this deadline can lead to serious disruptions in financial and tax matters.
Why Aadhaar‑PAN Linking Is Mandatory
Under indian tax law, linking PAN with Aadhaar has been made compulsory to ensure a unified identity and curb tax evasion and fraud. This requirement applies to most individual taxpayers — especially those who received PAN cards based on Aadhaar enrolment details before October 1, 2024.
CBDT (Central Board of Direct Taxes) and the Income Tax Department have reiterated that PAN must be linked with Aadhaar by the stipulated date to ensure that your PAN remains functional and compliant.
Final Deadline: 31 December 2025
- Last date to link PAN with Aadhaar: 31 December 2025
- After this date, unlinked PAN cards will become inoperative from 1 January 2026.
There is no official extension announced beyond this deadline. Taxpayers who fail to complete the process by year‑end risk having their PAN marked inactive.
Consequences of Not Linking Aadhaar and PAN
If you fail to link your PAN with your Aadhaar by the deadline, several consequences can follow:
1. PAN Becomes Inoperative
A PAN marked “inoperative” cannot be used for essential tasks like filing returns, verifying ITRs, or financial transactions.
2. Income Tax Returns (ITR) Affected
You may be unable to file or verify ITRs, or any pending returns may not be processed until the PAN is made operative again.
3. Higher TDS/TCS Deductions
If PAN is inactive, TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) can be applied at higher rates, and credits may not reflect in Form 26AS correctly.
4. Refunds and Financial Transactions Halted
Pending refunds may be withheld, and routine financial services including KYC updates, investments, bank account actions, and loan processing may face delays until PAN is reactivated.
Penalty for Late Linking
If you miss the deadline but still wish to link your PAN with Aadhaar later:
- You may have to pay a late linking fee of ₹1,000 before completing the process.
However, even after paying this amount, re‑activation of an inoperative PAN can take time, and the delays could cause financial inconvenience.
Who Must Link and Who Is Exempt
Must Link:
Most individual PAN holders who have a valid Aadhaar and received PAN before the specific deadline cut‑offs set by CBDT.
Exemptions May Apply To:
- Residents of certain states (e.g., Jammu & Kashmir, Assam, Meghalaya),
- Non‑Resident indians (NRIs) who don’t have Aadhaar,
- Individuals aged 80 or above,
- Some foreign citizens with PAN.
Always check official notifications to confirm exemptions that may apply to your specific status before assuming you’re not required to link.
How to Link PAN with Aadhaar
Online (E‑Filing Portal)
Visit the Income Tax e‑filing portal.
Click the “Link Aadhaar” option under Quick Links.
Enter your PAN, Aadhaar number and authenticate with OTP sent to your linked mobile.
Submit and confirm the status once processed.
Check Linking Status
You can verify whether your PAN is already linked by checking the link status on the portal or via SMS before initiating the process.
Final Word: Act Now, Don’t Delay
With the deadline nearing, millions of taxpayers are still rushing to complete the Aadhaar‑PAN linkage. Delaying this simple compliance task could lead to a host of unnecessary issues — from blocked financial services to stalled tax refunds.
If you haven’t completed it yet, do it immediately to avoid inconveniences starting January 1, 2026.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
click and follow Indiaherald WhatsApp channel