New Delhi, December 27: With just four days left before the December 31, 2025 deadline, taxpayers who have not yet linked their Permanent Account Number (PAN) with Aadhaar must act immediately. Failure to complete the process in time will render the PAN inoperative, disrupting tax filings and several financial transactions in the new year.

In a notification issued on April 3, 2025, the Income Tax Department clarified that individuals whose PAN was issued using an Aadhaar number before October 1, 2024, are required to complete PAN-Aadhaar linking by December 31, 2025. While new PANs issued through Aadhaar-based applications are automatically linked, millions of older PAN holders still need to complete this mandatory compliance. PAN-Aadhaar Linking Deadline 2025: Who Must Link, What Happens If PAN Turns Inoperative From January 1, 2026; Penalties, Exemptions and Step-by-Step Process Explained.

What is PAN-Aadhaar Linking?

PAN-Aadhaar linking is the process of connecting an individual’s PAN with their Aadhaar number. The objective is to authenticate identity, eliminate duplicate PANs, and improve the accuracy and transparency of the tax database. Once linked, both identifiers work together to streamline tax administration and reduce fraud.

Why is PAN-Aadhaar Linking Mandatory?

Under Section 139AA of the Income Tax Act, 1961, every individual who has been allotted a PAN and is eligible for Aadhaar must intimate their Aadhaar details to the tax department. If the PAN is not linked by the deadline, it becomes inoperative. An inoperative PAN cannot be used for filing income tax returns, opening bank accounts, undertaking high-value transactions, or claiming refunds.

Who Needs to Link PAN with Aadhaar?

The requirement mainly applies to individuals holding older PANs that were not automatically linked at the time of issuance. The Link Aadhaar facility is available to individual taxpayers, whether or not they are registered on the e-filing portal. Taxpayers can also check their Aadhaar PAN Link Status online to confirm whether the linkage is already complete. Forgot Your PAN? Income Tax India Explains How To Retrieve Permanent Account Number Using Aadhaar Card.

What Do You Need for PAN-Aadhaar Linking?

To complete the process smoothly, keep the following ready:

• A valid Permanent Account Number (PAN)

• Aadhaar number

• A mobile number linked with Aadhaar to receive OTP

How to Link PAN with Aadhaar Online

Taxpayers can visit the Income Tax Department’s e-Filing Portal and select ‘Link Aadhaar’ under Quick Links. After entering PAN and Aadhaar details, they must verify via OTP, pay the prescribed fee through e-Pay Tax, and then complete validation by logging in again. Once done, users should recheck their Aadhaar PAN Link Status on the portal.

With December 31, 2025 fast approaching, taxpayers are advised not to wait until the last minute. Completing PAN-Aadhaar linking now will ensure uninterrupted tax compliance and hassle-free financial transactions in 2026.

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(The above story first appeared on LatestLY on Dec 27, 2025 03:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).