Is your PAN card not yet linked to Aadhaar? Be careful… The government has made it clear that if you don’t link your Aadhaar-PAN by December 31, 2025, your PAN will become inactive from January 1, 2026.
This means you won’t be able to perform many important financial tasks. Today, your PAN card is the most important document for your identity and financial transactions.
Every year, millions of people find themselves in financial trouble due to just this one mistake. So, learn why Aadhaar-PAN linking is necessary, what happens if you don’t, and how you can do it online in just a few minutes.
Do this important work before 31 December
The Central Board of Direct Taxes (CBDT) has set the deadline for linking PAN and Aadhaar as December 31, 2025. After this date, the PAN cards of those who have not linked their Aadhaar will automatically become inactive. Not having an active PAN card means that services like ITR filing, refund processing, and high-value transactions will be disabled.
Which ones are not necessary to link?
Not everyone needs to link their Aadhaar and PAN. The government has exempted certain categories of people, such as those over 80 (Super Senior Citizens), Non-Resident Indians (NRIs), residents of Jammu and Kashmir, Assam, and Meghalaya, and those who are not Indian citizens. They are not required to link their Aadhaar and PAN.
What happens if PAN becomes inactive?
If you don’t link your PAN card on time, it will become “inoperative.” This will affect many of your financial activities.
- You will not be able to file ITR
- Income tax refund will not be available
- Bank account or mutual fund transactions will fail
- In many cases, higher TDS or TCS will be deducted.
According to the rules of the Income Tax Department, inactive PAN means that you have not “furnished” the PAN, which means it will not be valid for many important purposes.
Mutual funds and investments will also be affected
Many people have suffered this loss in the past. Those who didn’t have their PAN linked saw their mutual fund redemptions blocked, demat accounts closed, and tax-saving investments blocked. So, don’t delay this time, or your investments will be affected.
How to link Aadhaar-PAN online in minutes?
Linking your PAN with Aadhaar is very easy. Here’s a step-by-step process for you…
- For this you just have to go to the Income Tax e-filing portal.
- Click on “Link Aadhaar” in Quick Links or in the profile section after login.
- Enter PAN and Aadhaar number
- Pay the linking fee of ₹1000 through e-Pay Tax option and submit.
- Your Aadhaar-PAN link will be done in a few minutes.
How to check Aadhaar-PAN link status?
Once linked, you can check the status on the Income Tax portal. If the PAN is reactivated, your refunds and other financial processes will resume.
Why is it necessary to link PAN and Aadhaar?
The CBDT also recently stated that if you activate your PAN on time, you may be able to recover excess TDS/TCS deducted. The government also states that this step will increase transparency in financial transactions and reduce cases of fraud or tax evasion. Furthermore, it links all your bank, tax, and investment details to a unique identity, simplifying the process.
The PAN linking deadline has been extended previously, with the final deadline set for December 31, 2025. A fee of ₹1,000 will be required for linking, and if it’s not done by the deadline, your PAN will automatically become inactive.
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