The government has made linking PAN with Aadhaar mandatory for all individuals.
The deadline is December 31, 2025, and failing to link will make your PAN inoperative from January 1, 2026.
An inoperative PAN can disrupt income tax filing, refunds, banking, and investment activities.
Who Must Link Their PAN?
As per Section 139AA(2A) of the Income Tax Act:
Individuals who received a PAN using an Aadhaar enrolment ID before October 1, 2024 must link it with their actual Aadhaar number.
Anyone filing income tax returns, conducting banking or investment transactions, or dealing in stocks, mutual funds, or high-value financial activities is affected.
If the linking is not completed, the PAN will become inactive, leading to stalled services, higher TDS/TCS deductions, and blocked refunds.
Special Update for PAN Issued via Aadhaar Enrolment ID
The CBDT notification of April 3, 2025 specifies that PANs issued using an Aadhaar enrolment ID must be linked to the actual Aadhaar number by December 31, 2025.
No extra penalty applies if linking is completed in this window.
For other PAN holders, a ₹1,000 fee under Section 234H may apply if the PAN was issued before July 1, 2017 and remains unlinked.
Consequences of an Inoperative PAN
An inoperative PAN can affect your financial life in multiple ways:
ITR filing blocked – you cannot file returns or get refunds.
Higher TDS/TCS deductions under Sections 206AA/206CC.
Forms 15G/15H rejected – tax relief may stop.
KYC failures – bank accounts, mutual funds, and stock trading may be affected.
Refunds withheld – refund amounts and interest may not be processed.
To reactivate, a ₹1,000 penalty is required, and additional verification may be needed.
How to Link PAN with Aadhaar
The process is simple:
Visit the Income Tax e-filing portal
Click on “Link Aadhaar” (login not required)
Enter PAN, Aadhaar number, and name
Verify via OTP
Pay the ₹1,000 fee if applicable
Submit the request
The linking status updates within 3–5 days.
What If Your PAN Is Already Inoperative?
No need to panic.
You can reactivate it by:
Logging into the Income Tax portal
Paying the ₹1,000 penalty via e-Pay Tax
Completing the PAN-Aadhaar linking
The PAN usually becomes operative again within 30 days, but avoid major financial transactions during this period.
Bottom Line
The December 31, 2025 deadline is crucial.
Failing to link PAN with Aadhaar can disrupt banking, investment, and tax services.
If your PAN was issued using an Aadhaar enrolment ID, this is your final chance to act.
Complete the linking now to ensure uninterrupted financial access.
