The government has set the deadline for linking PAN with Aadhaar as December 31, 2025. Failure to do so by this date will render your PAN card inactive, potentially closing your bank accounts, halting investments, and severely hindering ITR filing. Learn about the four major financial problems you may face if your PAN is inactive and the simple way to activate it online within minutes—this crucial information is essential for you.
4 Major Financial Losses
The PAN card is a vital document for identification, transactions, and investments in the country. According to government regulations, it cannot be used for many key functions without linking it to Aadhaar. If your PAN card becomes inactive after December 31, 2025, you may immediately face these four problems.
A ‘Full Stop’ on Banking and Large Transactions
The lack of a PAN card has the greatest impact on banking activities. If your PAN is deactivated, the bank will not be able to process any major transactions. Whether opening a new bank account, updating an old account, or investing in a fixed deposit, the bank will immediately refuse.
Investment Accounts Freeze
The PAN card also plays a crucial role in the investment sector. Investments in mutual funds, the stock market, or any other securities are impossible without a PAN. If your PAN is not linked to Aadhaar, you will be unable to make new investments. Your existing investment accounts will also be unable to operate, potentially leading to significant losses.
Income Tax Return (ITR) Filing Interruption
Filing an Income Tax Return (ITR) with an inactive PAN card becomes extremely difficult. Your return will not be filed, and even if it is filed, refunds will be delayed and, in some cases, may even be rejected. This may require you to repeat the entire process.
Risk of High TDS Deductions
When your PAN is inactive, Tax Deducted at Source (TDS) is deducted at a much higher rate than normal on many financial transactions. This reduces your net income.
The Simple Way to Activate PAN Online
The good news is that you can reactivate your inactive PAN card online in minutes, from the comfort of your home.
The process is extremely simple and can be done through the Income Tax e-filing portal:
First, visit the Income Tax e-filing portal.
Click on the ‘Link Aadhaar’ option there.
Enter your PAN number, Aadhaar number, and other required information.
You will need to pay a late fee of ₹1,000 online.
Once the payment is successful and the linking process is complete, your PAN card will be reactivated, and you will be able to use it seamlessly.