PAN Card: The PAN (Permanent Account Number) of millions of people across the country will become inactive starting January 1, 2026, the first day of the new year. This means that millions of PAN cards could be deactivated by the night of December 31st of this month. Those whose PAN cards are deactivated will face a significant disruption in their important work. The deadline for linking PAN with Aadhaar is December 31st. Therefore, those whose Aadhaar-PAN cards are not linked will have their PAN deactivated after this date.
In a notification issued by the Income Tax Department on April 3, 2025, it was told that those who have been allotted PAN after October 1, 2024, are required to link PAN with Aadhaar by the end of this year i.e. by December 31.
How much penalty will have to be paid?
The deadline for linking your PAN with Aadhaar for all individuals was May 31, 2024. If you link your PAN with Aadhaar after December 31, you will have to pay a penalty of Rs 1,000, as the original linking date has passed. If your PAN becomes inactive, you will face several difficulties.
What will happen if this happens?
If your PAN is deactivated, you could face trouble with the authorities. A PAN card is a necessary document for all financial activities. Furthermore, without a PAN, you could face many problems.
You may face difficulties filing your ITR. If you’ve filed your ITR and are awaiting a refund, a PAN cancellation could delay your refund, and you’ll have to go through a lengthy process to obtain a new PAN.Additionally, if your PAN is not linked to your Aadhaar, you may have to pay higher TDS and TCS. You will also be unable to use Form 26AS and will not be able to obtain TCS/TDS certificates.You will not be able to open a bank account, obtain a credit/debit card, deposit cash exceeding Rs 50,000 in the bank or make bank transactions exceeding Rs 10,000.Additionally, you may be denied access to government services, including KYC, and investments in mutual funds and equities may be halted.