PAN Aadhaar Linking Deadline is approaching, and eligible PAN holders have only a limited time left to complete the mandatory linking process.
According to the government, PAN cards that are required to be linked with Aadhaar but remain unlinked by December 31, 2025, will become inoperative.
The government has made PAN-Aadhaar linking mandatory to simplify income tax filing, banking services and financial transactions.
PAN Aadhaar Linking Deadline
The Finance Ministry has stated that every person who was allotted a Permanent Account Number (PAN) on the basis of an Aadhaar enrolment ID submitted before October 1, 2024, must intimate their Aadhaar number to the Income Tax Department by December 31, 2025, or any later date notified by the Central Board of Direct Taxes (CBDT).
Those who fail to complete the process within the deadline may find their PAN becoming inoperative.
What happens if PAN becomes inoperative?
According to the Income Tax Department, an inoperative PAN can lead to several difficulties.
Taxpayers may not be able to file income tax returns or receive income tax refunds. Higher rates of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) may also apply.
Form 15G and Form 15H will not be accepted while the PAN remains inoperative.
An inactive PAN may also affect the opening of Demat accounts, transactions involving shares, bonds, mutual funds and insurance, as well as certain banking services and high-value financial transactions.
Applicants may also face difficulties while applying for personal, home, education or vehicle loans.
Penalty and how to link PAN with Aadhaar
The latest guidelines provide for a penalty of Rs 1,000 through the Income Tax Department’s e-Pay facility to reactivate an inoperative PAN after missing the deadline.
Taxpayers can link PAN with Aadhaar through the Income Tax Department’s e-filing portal.
After logging in, users can choose the “Link Aadhaar” option from their profile section, enter their Aadhaar number and complete the validation process.
The linking request can also be submitted without logging in by selecting the “Link Aadhaar” option under Quick Links on the e-filing portal.
Users need to enter their PAN, Aadhaar number, complete the required details and verify the request using the OTP sent to their registered mobile number.
