PAN-Aadhaar linking: The Indian government has made it mandatory to link the Permanent Account Number (PAN) and Aadhaar card. Tax advisory platform TaxBuddy warned on social media platforms that if you don’t link your PAN with Aadhaar by December 31, 2025, your PAN card will become inactive from January 1, 2026.
what is the detail
According to TaxBuddy, “Your PAN card will be deactivated from January 1, 2026. You will not be able to file ITR, nor will you receive a refund. Even your salary credit or SIP may fail.” With this warning, tax experts have advised people to complete the PAN-Aadhaar linking as soon as possible, so that financial transactions or tax-related work are not disrupted.
Multiple extensions of deadlines
It’s worth noting that the government has extended the deadline for PAN-Aadhaar linking several times, but the new deadline so far is December 31, 2025. Any further extension after this is unlikely.
For which people is it mandatory to link PAN-Aadhaar?
According to a notification from the Ministry of Finance dated April 3, 2025, “Every person who has been allotted a PAN based on the enrollment ID of the Aadhaar application form before October 1, 2024, must inform the Income Tax Department of his or her Aadhaar number by December 31, 2025.” This means that if you obtained a PAN using your Aadhaar enrollment ID, it is mandatory to link your PAN with Aadhaar after receiving your Aadhaar number, even if you already have one. This process can be easily done online on the Income Tax Department’s e-filing portal.
What happens if PAN-Aadhaar is not linked?
If you don’t complete the PAN-Aadhaar linking by December 31, 2025, your PAN will become inactive from January 1, 2026. This situation will cause you several problems:
– You will not be able to file or verify Income Tax Return (ITR).
– Tax refund will not be available.
– Pending ITRs will not be processed.
– TDS/TCS information will not be visible in Form 26AS.
– TDS/TCS will be deducted at higher rates.
– It will be reactivated once the PAN is relinked, usually within 30 days.
Financial implications of an inactive PAN
It’s worth noting that if your PAN is deactivated, your existing bank accounts and investments will remain safe, but you won’t be able to perform financial transactions like new investments, share trading, or KYC updates. Furthermore, your salary transfers or SIP auto-debits may fail. Opening new bank accounts, purchasing, or redeeming investments may be disrupted. ITR filing or tax compliance will be halted. This means that while your money may remain safe, all financial transactions and tax-related activities will be halted until your PAN is reactivated.
PAN-Aadhaar Linking Process (Step by Step)
1. Visit the official website of Income Tax Department- https://www.incometax.gov.in
2. Select “Link Aadhaar” option.
3. Enter PAN number, Aadhaar number and mobile number.
4. Do OTP verification.
5. If the PAN is already inactive, pay a fee of ₹1,000 first.
6. After the process is completed, check the status by going to ‘Quick Links → Link Aadhaar Status’.
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