PAN-Aadhaar Link Deadline – The government has now made it mandatory for all taxpayers to link their PAN to their Aadhaar. According to a recent warning issued by TaxBuddy on social media, anyone who fails to complete this process by 31 December 2025 may face serious consequences. From 1 January 2026, the PAN card of non-compliant individuals will automatically become inactive, blocking several key financial activities.
Why Your PAN May Become Inactive?
Tax experts have cautioned that an inactive PAN will create significant hurdles for tax compliance. Once deactivation takes effect, you will not be able to file your income tax return, claim refunds, or complete essential banking processes. Even salary credit, SIP auto-debit, and other financial instructions may fail if your PAN is no longer considered valid.
Officials also believe the deadline may not be extended this time. The government has already granted multiple extensions, but the final cut-off date for linking PAN to Aadhaar is now set for 31 December 2025.
What does the Finance Ministry Notification say?
As per the Finance Ministry’s notification dated 3 April 2025, any individual who received a PAN based on an Aadhaar enrolment ID before 1 October 2024 must update their Aadhaar details with the Income Tax Department by the new deadline.
This means that even if your PAN was issued earlier using your Aadhaar enrolment slip, linking it with your actual Aadhaar number is now essential. The process can be completed online through the Income Tax e-filing portal in just a few steps.
What Happens If You Miss the Deadline?
If your PAN becomes inactive from 1 January 2026, your bank accounts and existing investments will remain safe. However, you will not be able to:
- File Income Tax Returns
- Receive tax refunds
- Complete TDS/TCS-related procedures
- Make new investments
- Update KYC
- Trade in shares
- Redeem or purchase mutual funds
- Open new bank accounts
Your PAN will be reactivated only after the linking process is complete. If the PAN is already inactive at the time of linking, you will be required to pay a penalty of ₹1,000.
How to Link PAN with Aadhaar?
To complete the linking process, follow these steps:
- Visit the Income Tax Department’s official e-filing website.
- Open the “Link Aadhaar” section.
- Enter your PAN, Aadhaar number, and registered mobile number.
- Verify the OTP sent to your phone.
- If your PAN is already inactive, make the ₹1,000 payment.
- Once verification is complete, your PAN will be reactivated.