PAN-Aadhaar Linking: Final Deadline and Key Steps

The PAN Aadhaar link is now a mandatory requirement under Indian tax laws. 

If not complied with, your Permanent Account Number (PAN) may become inoperative, leading to serious disruptions in tax filing, refunds, and financial transactions. 

The Central Board of Direct Taxes (CBDT) has issued a new directive for individuals who obtained their PAN using an Aadhaar enrolment ID rather than their actual Aadhaar number to complete the Aadhaar PAN linking by December 31, 2025. 

Failing to meet this deadline may render your PAN inoperative from January 1, 2026, resulting in disruptions in tax filing, refunds, and other financial activities. Here’s more about the PAN Aadhaar link, its deadlines, outcomes of not linking PAN with Aadhaar and steps in this article.

Who Must Link PAN and Aadhaar?

Under Section 139AA(2A) of the Income Tax Act, every individual who has been allotted a PAN as on 1st July 2017 and is eligible to obtain an Aadhaar number must link the two in the prescribed manner. 

This includes Indian citizens who file income tax returns, invest in financial instruments, or undertake high-value financial transactions.

For all others, failure to complete the Aadhaar PAN linking process will result in their PAN becoming inoperative, restricting them from accessing tax and financial services.

Deadlines and Recent Updates on PAN Aadhaar Link

Originally, the CBDT had set the PAN-Aadhaar linkage deadline at June 30, 2023, extended later to May 31, 2024, with a late-linking penalty of ₹1,000. 

However, the most recent April 3, 2025 notification grants a specific extension for those who obtained PAN using an Aadhaar enrolment ID. 

They must now complete the linkage by December 31, 2025, using their final Aadhaar number.

Failing to link by the deadline will result in the PAN becoming inoperative starting January 1, 2026, for this category. According to tax experts, no penalty will be levied if the linkage is completed within this period. 

Other PAN holders who missed earlier deadlines may still face a Rs.1,000 fee under Section 234H

What will Happen if your Don’t Link PAN with Aadhaar

Failing to link PAN with Aadhaar within the deadline can have serious consequences for taxpayers and investors. These are as follows:

1. PAN Becomes Inoperative:
   You will not be able to file income tax returns (ITRs), receive tax refunds, or carry out any transaction where quoting of PAN is mandatory.
2. Higher TDS/TCS Deduction:
   Under Section 206AA and 206CC of the Income Tax Act, if PAN is not furnished or is inoperative, TDS/TCS will be deducted at higher rates.
3. Disrupted Form Submissions:

Submissions like Form 15G/15H, necessary for non-deduction of TDS, will not be accepted.

1. KYC and Service Restrictions:
   Banks, mutual funds, and stockbrokers may suspend services such as investments, redemptions, or opening of new accounts due to invalid KYC.
2. Compliance Penalties:
   Reactivating a PAN post-deadline involves payment of ₹1,000 fine and may require additional verification steps.
3. Non-Processing of Refunds:

Refunds will not be issued for an inoperative PAN, nor will any interest on such refunds likely be paid

To avoid these disruptions, it is crucial to verify your PAN Aadhaar link status and act immediately if linking is still pending.

How to Link PAN and Aadhaar 

The Income Tax Department has provided a simple online method for PAN and Aadhaar. This is as follows:

1. Visit the Income Tax e‑filing portal.
2. Click on “Link Aadhaar” under “Quick Links” (no login required).
3. Enter your PAN, Aadhaar number, and name exactly as in Aadhaar; click “Validate”.
4. An OTP will be sent to your Aadhaar-registered mobile number; enter it.
5. If you're linking post previous deadlines, you'll need to pay a Rs.1,000 penalty via e‑Pay Tax; choose Minor Head “₹500 Fee for delay in linking PAN with Aadhaar”.
6. Submit the form after payment.
7. A confirmation message will be displayed. Status updates on the portal usually take 3–5 working days to reflect.

After submission, you can verify your PAN Aadhaar link status on the portal to confirm successful linkage.

You can ensure that your Aadhaar is updated with correct details including your mobile number for OTP-based authentication.

What to Do If Your PAN Is Already Inoperative

If your PAN has already been marked inoperative, do not panic. You can still reactivate it by paying penalty, for reactivation, you may follow these steps:

• Visiting the Income Tax portal.
• Paying the ₹1,000 penalty through e-Pay Tax under Minor Head 500.
• Completing the PAN-Aadhaar linking process online.

It will be 30 days for the PAN card to be operative again.

Once the payment and linking request are processed successfully, the status of your PAN will be updated to “operative” within a few days. Until then, you can avoid initiating any high-value financial transactions, as your PAN will not be accepted for compliance or verification purposes.

Conclusion

The December 31, 2025 deadline is a vital compliance milestone for those PAN holders who received PANs using an Aadhaar enrolment ID. Post this deadline, PANs will go inoperative, leading to blocked tax filings, higher tax deductions, failed refund claims, and disrupted banking and investment activities. If you fall in this category, check your PAN Aadhaar link status now, complete the linking process online, and avoid any financial penalties or inconveniences.

For all PAN holders, ensuring a seamless and operative PAN must be a priority. Even amidst other deadlines, staying current with your PAN-Aadhaar linkage safeguards your financial liberty and compliance status. Ao, let us resolve yesterday’s oversights and secure tomorrow’s transactions, link your PAN and Aadhaar before December 31, 2025.

PAN Aadhaar Link FAQs

Q1. How can I check my PAN-Aadhaar link status?
Use the “Link Aadhaar Status” option on the e-filing portal, entering your PAN and Aadhaar.

Q2. Does the December 2025 deadline apply to everyone?
No, it's specific to PANs issued using an Aadhaar enrolment ID before October 1, 2024. Other PAN holders are governed by earlier deadlines.

Q3. Is there a penalty for these specific holders?
Experts indicate no penalty will apply if they link by December 31, 2025, but clarity may come from official CBDT updates.

Q4. What if my names don't match in PAN and Aadhaar?
Correct discrepancies first via Protean eGov or UIDAI (for Aadhaar) before linking.

Q5. Can linking be done offline?
Yes. Visit NSDL or UTIITSL centres with PAN, Aadhaar copies, and a penalty receipt or e‑Challan (if applicable) for biometric verification.