Individuals face major complications and issues if they do not link their PAN Card with Aadhaar. The government has established regulations that indicate many services that require the linkage between a PAN and Aadhaar cannot be rendered without the two being linked. The deadline to link the two is December 31, 2025.
If your PAN card is not linked with Aadhaar by the deadline, it will be invalidated. This means you cannot use the PAN card for anything. Specifically, you will not be able to complete income taxes, open a bank account, engage in higher transactions, or invest in financial products. Banking transactions will be affected the most. There are many higher transactions where a person is required to authorize using their PAN card.
Link PAN with Aadhaar to Avoid Problems
Whether you are opening a new bank account, updating an old account, or investing in a fixed deposit, the bank will not process your request if your PAN is inactive. PAN also plays an important role in investments. You cannot invest in mutual funds, the stock market, or any other securities without a linked PAN. If your PAN is not linked to Aadhaar, your investment accounts will not work.
Filing your ITR is also difficult without a linked PAN. You cannot file your ITR with an inactive PAN. Refunds may get delayed or even rejected, and you may have to redo the entire process.
Linking your PAN and Aadhaar is easy. You can do it online in a few minutes. Visit the Income Tax e-filing portal, enter your PAN, Aadhaar, and the required information. Pay a late fee of Rs 1,000. Once the linking is complete, your PAN will be reactivated.