PAN Card Alert: Do This Work Before January 1 otherwise Your PAN Will Become Inactive

PAN Card Latest Update: If you do not follow the rules of the Central Board of Direct Taxes (CBDT), your PAN card may get deactivated. All PAN cardholders must link their PAN with their Aadhaar number before the CBDT deadline. If you fail to do this, your PAN will become inactive.

What Happens If Your PAN Gets Deactivated?

You will face problems in many financial activities. You cannot open a bank or demat account, or make cash or fixed deposits above ₹50,000. Since a demat account needs a PAN, you will not be able to invest in the stock market or start SIPs. You also cannot apply for government schemes related to financial welfare.

Without an active PAN, banks and financial institutions will not approve your loan applications.

You also cannot buy or sell property or vehicles. In addition, foreign exchange transactions above ₹50,000 will not be possible. PAN is also required to run a business, so an inactive PAN can stop many of your financial activities.

How to Link PAN with Aadhaar

• You can link your PAN with Aadhaar by following these simple steps:
• Go to the Income Tax e-Filing website: https://www.incometax.gov.in/iec/foportal
• .Click on ‘Link Aadhaar’ on the left side.
• Enter your PAN and Aadhaar numbers and click ‘Validate’. Follow the steps shown and pay ₹1,000.
• After payment, click ‘Submit’ to finish the process.
• If your PAN and Aadhaar are already linked, you will see a message showing that. If not, you will get an option to enter your mobile number and an OTP. Enter the OTP to complete the linking.
• The Finance Ministry gave this rule in April under CBDT Notification No. 26/2025. Follow it to avoid problems later.

What is CBDT?

The Central Board of Direct Taxes (CBDT) is a government organization. It makes rules for direct taxes and helps the Income Tax Department apply those rules.

Difference Between CBDT and Income Tax Department

The CBDT works under the Ministry of Finance. It makes plans and policies for direct taxes.

The Income Tax Department works under the CBDT. It makes sure tax laws are followed properly.