Mumbai, December 31: Taxpayers across India face a critical midnight deadline today, December 31, to link the Aadhaar with the PAN card. Failure in PAN and Aadhaar card linking could result in deactivation.

The government’s mandate aims to streamline tax administration and eliminate duplicate identity records. As the window closes, officials have urged citizens to utilise the online e-filing portal to rectify their status, noting that an inoperative PAN can disrupt everything from salary credits to property transactions. Aadhaar-PAN Linking Deadline Ends Today: How To Link, Penalty, Exemptions and Key Details.

What Happens if You Miss PAN-Aadhaar Card Linking

If a PAN is not linked to Aadhaar by the end of today, it will become "inoperative" effective January 1. While the card remains physically valid, it will no longer be recognised for financial transactions where a PAN is mandatory.

The primary impact of an inoperative PAN includes the inability to claim tax refunds or receive interest on such refunds. Furthermore, Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) will be applied at much higher rates than usual, leading to a direct reduction in take-home liquidity for many individuals. 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.

Last Chance for Belated and Revised ITRs

December 31 is also the final date for taxpayers to file a belated ITR for the Assessment Year 2024-25. This applies to those who missed the original July 31 deadline. Filing today allows taxpayers to avoid further legal complications, though a late fee is mandatory.

Additionally, this is the final opportunity for taxpayers to submit a revised ITR. This process is used to correct any errors, omissions, or wrong statements made in the original return. Once this deadline passes, the opportunity to rectify mistakes is generally lost, which could lead to inquiries from the Income Tax Department if discrepancies are found later.

Penalties and Associated Fees

Compliance at this late stage comes with financial costs. For linking PAN with Aadhaar, a late fee of INR 1,000 must be paid through the e-filing portal before the request can be processed.

For ITR filings, the penalty structure depends on the taxpayer’s income. If the total annual income is below INR 5 lakh, the late fee is INR 1,000. For those earning more than INR 5 lakh, the penalty increases to INR 5,000. These fees must be cleared before the return is considered successfully filed.

How to Link PAN With Aadhaar

Taxpayers can check their status and complete these tasks via the official Income Tax e-filing portal. To link documents, users should navigate to the ‘Link Aadhaar’ tab, enter their details, and verify the link using a One-Time Password (OTP) sent to their registered mobile number.

For those filing returns, the department recommends ensuring that all bank accounts are pre-validated to avoid delays in receiving refunds. Given the high volume of traffic expected on the portal today, experts suggest completing the process as early as possible to avoid technical glitches near the midnight cutoff.

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(The above story first appeared on LatestLY on Dec 31, 2025 04:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).