PAN-Aadhaar Linking Deadline Nears: PAN Inoperative from Jan 1, 2026 if Not Linked

If your PAN is not linked with Aadhaar by December 31, 2025, it will become inoperative from January 1, 2026. This can seriously affect your tax filings and day-to-day financial activities.

The government has made PAN–Aadhaar linking compulsory to improve tax compliance and prevent duplicate PANs.

Who Must Link PAN with Aadhaar?

As per a Finance Ministry notification dated April 3, 2025, individuals who were issued a PAN using an Aadhaar enrolment ID before October 1, 2024 must link their Aadhaar number with PAN by December 31, 2025, or any later date notified by the CBDT.

Even if your PAN was issued earlier using an Aadhaar enrolment slip, you still need to complete the formal Aadhaar linking once the Aadhaar number is generated.

What Happens If PAN Becomes Inoperative?

If PAN–Aadhaar linking is not completed on time, the PAN will turn inoperative and may lead to several problems:

• Income tax returns cannot be filed or verified
• Pending tax refunds will not be processed
• TDS and TCS credits may not appear correctly in Form 26AS
• TDS may be deducted at higher rates
• Opening new bank accounts or making fresh investments may be restricted
• Trading in securities may not be allowed

Existing bank accounts will continue to function, but most PAN-based KYC transactions may be blocked until the PAN is reactivated.

How to Link PAN with Aadhaar?

PAN–Aadhaar linking can be done online through the Income Tax Department’s official website, even if you are not registered on the e-filing portal.

You need to:

• Enter PAN and Aadhaar number
• Provide a mobile number linked with Aadhaar
• Verify details using OTP

If your PAN has already become inoperative, a penalty of ₹1,000 must be paid before completing the linking process.

Important Things to Check Before Linking

• Name, date of birth, and gender must match exactly on PAN and Aadhaar
• Aadhaar-linked mobile number must be active for OTP verification

Read More, EPFO New Rules: Are Weekly Offs Between Jobs Considered Service Break for Insurance Eligibility? 

Conclusion

With the December 31, 2025 deadline approaching, delaying PAN–Aadhaar linking could disrupt your finances and tax compliance. Completing the process early can help avoid penalties, technical issues, and last-minute stress.

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