Aadhaar-PAN Linking Deadline Ends Today: How To Link, Penalty, Exemptions and Key Details
The Income Tax Department has issued a final reminder that December 31, 2025 is the absolute deadline to link Permanent Account Numbers (PAN) with Aadhaar. PANs not linked by midnight will become inoperative from January 1, 2026, leading to significant financial and legal hurdles.
New Delhi, December 31: The Income Tax Department has issued a final reminder that December 31, 2025 is the absolute deadline to link Permanent Account Numbers (PAN) with Aadhaar. PANs not linked by midnight will become inoperative from January 1, 2026, leading to significant financial and legal hurdles.
Although the linking mandate has been in place for several years, the Central Board of Direct Taxes (CBDT) recently provided a specific compliance window. Individuals who were allotted a PAN using an Aadhaar enrolment ID before October 1, 2024 must now update their records with their permanent Aadhaar number to remain compliant. Aadhaar Pan Card Link Status: Your PAN Will Turn Inoperative From January 1, 2026 if Not Linked by December 31; Check Exemptions, Process and Penalties Here.
Consequences of an Inoperative PAN
A PAN not linked by the deadline will be marked “inactive,” resulting in immediate consequences:
- Tax refunds: Pending refunds and interest will be withheld.
- Higher tax rates: TDS and TCS may be levied at maximum applicable rates, often 20%.
- Financial restrictions: Opening new bank accounts, investing in mutual funds, or conducting high-value transactions requiring PAN will not be permitted.
Fees and Exemptions
Most taxpayers who missed earlier deadlines must pay a late fee of INR 1,000 through the e-filing portal before submitting the linking request. However, PAN holders who received their cards on or after October 1, 2024, using an Aadhaar enrolment ID can complete the linkage free of charge until the end of today. Certain categories remain exempt from the requirement, including non-citizens, individuals above 80 years of age, and residents of Assam, Jammu and Kashmir, and Meghalaya. PAN-Aadhaar Card Link Deadline Nears: Who Is Exempt and Who Still Needs To Link, Check Details.
How to Link PAN and Aadhaar
Taxpayers can complete the process on the official e-filing portal:
- Visit www.incometax.gov.in and go to Quick Links.
- Select Link Aadhaar and enter PAN and Aadhaar details.
- If applicable, pay INR 1,000 via e-Pay Tax under Other Receipts (500).
- Enter the 6-digit OTP sent to the Aadhaar-registered mobile number.
- Submit the request; the status usually updates within 4–5 working days.
With the deadline hours away, taxpayers are urged to act immediately to avoid an inoperative PAN and the cascading restrictions that follow. Verifying that personal details match on both PAN and Aadhaar before submission can prevent technical rejections and ensure uninterrupted access to banking, investments, and tax services in the new year.
(The above story first appeared on LatestLY on Dec 31, 2025 11:33 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).