PAN–Aadhaar Linking Deadline Nears: What Taxpayers Must Do Before Dec 31?

With the December 31, 2025, deadline drawing near, millions of Indian taxpayers are hurrying to complete the mandatory PAN–Aadhaar linking. The Central Board of Direct Taxes (CBDT) has reiterated that linking is essential for a unified identity system across banking, financial transactions and income tax compliance. The mandate applies to individuals who were allotted a PAN on or before July 1, 2017 and possess a valid Aadhaar.

Who Must Link PAN and Aadhaar?

The CBDT has specifically highlighted that taxpayers who received their PAN before October 1, 2025, using an Aadhaar-enrolment ID instead of a final Aadhaar number must complete the process before the December 31 deadline. This ensures that the PAN database remains verified and updated, avoiding duplication and identity discrepancies.

Consequences of Missing the Deadline

Failure to link PAN and Aadhaar by December 31, 2025, will render the PAN inoperative from January 1, 2026. This may disrupt various financial and tax-related activities, including filing income tax returns, receiving refunds, and validating high-value transactions. Banks, mutual funds and financial intermediaries may halt KYC-driven processes such as account opening, investments, redemptions and loan approvals until the PAN is reactivated.

How to Link PAN and Aadhaar Online?

Taxpayers can complete the process through the Income Tax e-Filing portal. They must enter their PAN, Aadhaar number and name as per Aadhaar, authenticate via OTP and submit the request. 

Linkage typically reflects within three to five working days. If a PAN has already become inoperative, reactivation requires payment of a ₹1,000 fee through the e-Pay Tax portal, followed by resubmission of the linking request. The reactivation process may take up to 30 days.

Also Read: Income Tax Refunds 2025: Processing Times for Salaried vs Business Taxpayers!

Conclusion

With the deadline fast approaching, taxpayers are urged to verify the status of their PAN–Aadhaar linkage and complete the process promptly. Ensuring compliance before December 31, 2025, helps avoid disruptions across tax filing and essential financial transactions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.