PAN Card Update: The PAN card is a crucial document in all of our lives. It is used for filing income tax returns, opening bank accounts, making investments, and many other financial transactions. However, if you fail to comply with the Central Board of Direct Taxes’ new rules, your PAN may become inactive. Linking your PAN with Aadhaar has now become mandatory. Failure to link your PAN and Aadhaar by the deadline will result in the PAN becoming inactive, leading to numerous related problems.
Problems if your PAN card is deactivated
If your PAN becomes inactive, you will face difficulties in many financial transactions. First, you will not be able to open a bank account or a demat account, as both are impossible without a PAN card. Furthermore, cash deposits or fixed deposits exceeding ₹50,000 will also be prohibited.
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Additionally, if your PAN is deactivated, you will be unable to invest in the stock market, start SIP plans, or apply for government schemes. Obtaining loans from banks or financial institutions will also become difficult, as these processes cannot be completed without a PAN.
If you are considering purchasing a house or vehicle, this will also be impossible without a PAN. Furthermore, foreign exchange transactions exceeding ₹50,000 cannot be conducted with an inactive PAN. A PAN card is also mandatory for conducting business, so its deactivation will hinder business activities.
How to Link PAN with Aadhaar
Linking your PAN with Aadhaar has now become very easy. To do this, you need to visit the official website of the Income Tax Department and follow a few simple steps. First, go to the Income Tax e-filing portal. Click on the ‘Link Aadhaar’ tab in the left panel. Then, enter your PAN and Aadhaar numbers and click the ‘Validate’ button.
If your PAN and Aadhaar are already linked, a pop-up message will appear on the screen. If not, you will need to enter your mobile number, to which an OTP will be sent. After receiving the OTP, enter it to complete the process of linking your PAN with Aadhaar.
Learn about the CBDT’s rules
The Ministry of Finance announced the mandatory PAN and Aadhaar linking requirement in April through CBDT Notification No. 26/2025. Failure to meet this deadline could result in the PAN becoming inactive and lead to difficulties in financial transactions. This CBDT step ensures that taxpayers’ data is accurate and secure, and they can be protected from fraud.
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What is the CBDT?
The CBDT is a key organization in India, responsible for the policy and administration of direct taxes. It operates under the Income Tax Department and is affiliated with the Revenue Department of the Indian Ministry of Finance. The CBDT advises the Indian government on direct tax planning and regulations and ensures that the laws are properly followed. The Income Tax Department operates under the guidance of the CBDT.
Difference between the Income Tax Department and the CBDT
The CBDT guides the Income Tax Department, which is responsible for enforcing laws and ensuring that all taxpayers pay taxes correctly. Although the CBDT does not collect taxes itself, it assists in implementing the department’s rules and policies.