PAN Card: Big news for PAN Card holders. If you don’t link your PAN card to your Aadhaar card by the December 31, 2025 deadline, it may become invalid. TaxBuddy (formerly known as X) shared this information in a social media post on Twitter. To prevent your PAN card from becoming invalid, it’s essential to link your UID card (Aadhaar card) to your Permanent Account Number (PAN).

TaxBuddy’s tweet states that your PAN card will become inactive from January 1, 2026. There will be no ITR filing. No refunds will be available. Even your salary credits or SIPs may fail. Be sure to check this important information before the December 31, 2025 deadline. The government has also suggested ways to link your PAN card to Aadhaar.

The government has extended the deadline for linking PAN and Aadhaar several times, but no new date has been set yet. But what could be the consequences if you fail to meet the December 31, 2025, deadline? Will your salary be withheld? Will you be unable to make or redeem investments? Will your bank accounts be blocked? Let’s try to answer these questions for you.

Is it mandatory for everyone to link their PAN with Aadhaar card?

As per a notification issued by the Ministry of Finance on April 3, 2025, the central government has notified that every person, who has been allotted a Permanent Account Number (PAN) on the basis of the enrolment ID of the Aadhaar application form filed before October 1, 2024, shall intimate his/her Aadhaar number to the Principal Director General of Income Tax (Systems) or Director General of Income Tax (Systems) or the person authorised by the said authorities, on or before December 31, 2025, or by any date specified in this regard by the Central Board of Direct Taxes.

Deepesh Chheda answered in the affirmative. He explained that this is the group that is required to link their PAN by December 31, 2025. Even if the PAN card was created using the Aadhaar enrollment ID, the linking process must be completed after the Aadhaar number is issued. The Income Tax e-filing portal allows such users to easily link their Aadhaar with PAN online.

If PAN-Aadhaar linking is not completed by the deadline, the PAN becomes inactive from the next day. You cannot file or verify income tax returns, refunds will be withheld, pending returns will not be processed, and TDS/TCS credits may not be reflected in Form 26AS, TDS/TCS deduction/collection may occur at higher rates, etc. After subsequent linking, the PAN becomes active again, usually within 30 days.

What are the financial consequences of an inactive PAN?

If your bank accounts or investments are already active, there’s no immediate impact; your money remains safe. However, an inactive PAN may prevent future financial activities such as new investments, stock transactions, or KYC updates. Taxes may be deducted at higher rates, and you may not be able to file or process your ITR. In short, as long as your current assets remain intact, your ability to transact or comply with tax regulations is halted until your PAN is reactivated.

How can you link your PAN with your Aadhaar card?

  • You can link your PAN with Aadhaar through the Income Tax Department’s portal.
  • First, visit the official Income Tax website.
  • Click on Link Aadhaar → Enter your PAN, Aadhaar, and mobile number.
  • Then, verify with an OTP.
  • If the PAN is already inactive, pay a fee of Rs 1,000 first.
  • Check the status under ‘Instant Link → Link Aadhaar Status’.