PAN Aadhaar linking: The government has reminded all taxpayers to finish the PAN-Aadhaar linking by December 31, 2025. If anyone misses this deadline, their PAN will be inactive starting January 1, 2026. This rule specifically applies to those whose PAN was issued before October 1, 2024, based on Aadhaar enrolment ID.
What happens if the deadline is missed?
If the PAN becomes inactive, many crucial financial activities can be put on hold.
Filing your ITR, getting a refund, doing banking transactions, investing in mutual funds, or trading in the stock market all require a PAN. Transactions won’t go through.
Banks, brokers, and mutual fund companies might also reject KYC, which could stop activities like SIPs, demat accounts, and deposits. TDS and TCS could also be deducted at higher rates.
What if you link after the deadline?
If someone links their PAN with Aadhaar after the deadline, the PAN will be reactivated, but it might take around 30 days. Plus, a Rs 1,000 fee will apply. This could delay urgent transactions.
How to link PAN-Aadhaar?
You can link your PAN and Aadhaar numbers on the Income Tax Department’s e-filing portal. The process is completed after OTP verification. The department has advised that the information on both documents should match perfectly to avoid rejection during the linking process.
Why is it important to link now?
With just a few weeks left until the year ends, the government has urged everyone to complete the linking process as soon as possible to prevent any financial issues or hurdles in the new year.