The government has set the deadline for linking your PAN with your PAN Aadhaar as December 31, 2025. Failure to do so by the deadline could result in the PAN becoming inactive from January 1, 2026, disrupting tax, banking, and investment-related processes.
Add informalnewz.com as a Preferred Source
PAN-Aadhaar linking: Have you linked your PAN with Aadhaar? According to government regulations, linking your PAN with Aadhaar is now mandatory for all citizens. The central government has issued a new directive requiring certain categories of PAN holders to link their PAN with Aadhaar by December 31, 2025. If this process is not completed by the deadline, the PAN will become inactive from January 1, 2026. An inactive PAN may disrupt income tax return filing, refunds, and various banking and investment-related functions.
Who is required to link their PAN with Aadhaar?
According to Section 139AA(2A) of the Income Tax Act, linking your PAN with Aadhaar is mandatory for those who received their PAN through their Aadhaar enrollment ID before October 1, 2024. If the linking is not completed by December 31, 2025, the PAN will be deactivated and cannot be used for any tax or financial purposes. This rule applies to taxpayers, investors, and anyone who engages in large transactions or financial activities involving KYC, such as filing income tax returns, banking or investment transactions, the stock market, mutual funds, or high-value transactions.
If the PAN was issued using an Aadhaar Enrollment ID
In a notification issued on April 3, 2025, the CBDT stated that those who obtained their PAN using an Aadhaar Enrollment ID instead of their Aadhaar number must link their PAN with their original Aadhaar number by December 31, 2025. Linking within this timeframe will not incur any additional penalty. However, a fee of ₹1,000 under Section 234H will still apply to other PAN holders, especially those whose PAN was issued before July 1, 2017, and has not yet been linked.
What happens if a PAN becomes inactive?
- If a PAN becomes inactive, your financial activities may come to a virtual halt. For example,
- You will not be able to file your income tax return
- Refunds may also be delayed
- Higher TDS and TCS will be deducted
- Forms like 15G/15H will not be accepted
- KYC failures may occur in banks, mutual funds, and stock trading
How to reactivate a PAN?
Reactivating an inactive PAN requires a penalty of ₹1,000 and linking it to Aadhaar. PANs are usually reactivated within 30 days.
Easy way to link PAN Aadhaar
- Go to the Income Tax e-filing portal
- Click on the “Link Aadhaar” option (no login required)
- Enter the PAN, Aadhaar number, and name
- Verify with an OTP
- Pay the ₹1,000 fee through e-Pay Tax, if required.
Submit the form
The December 31, 2025, deadline is crucial. Not linking your PAN with Aadhaar will not only result in a penalty, but will also impact your banking, investment, and tax-related services. Link it early to avoid any future problems.
