PAN Card Alert 2025: Link Your Aadhaar Before December 31 To Avoid Deactivation

PAN card holders must act fast as the deadline to link PAN with Aadhaar approaches. If you fail to complete the process by December 31, 2025, your PAN card will become inactive from January 1, 2026. TaxBuddy recently highlighted this in a social media post, warning users of potential disruptions in filing income tax returns, receiving refunds, or carrying out other financial transactions.

The government has stressed that linking PAN with Aadhaar is essential to keep the PAN active. Failing to do so can impact your salary credits, investments such as SIPs, and financial compliance, making it critical for all eligible users to complete the process promptly.

Who Must Link PAN with Aadhaar?

As per the Ministry of Finance notification issued on April 3, 2025, individuals who received their PAN using an Aadhaar enrolment ID before October 1, 2024, must link their PAN with Aadhaar by December 31, 2025. Even if your PAN was generated using an Aadhaar enrolment ID, you must link it after the Aadhaar number is officially issued.

Deepesh Chheda confirmed that this group is legally required to complete the linking process. The Income Tax e-filing portal allows users to link PAN and Aadhaar online in just a few minutes.

Consequences of Not Linking PAN and Aadhaar

If the linking is not done by the deadline, your PAN will become inactive the following day. This will result in:

• Inability to file or verify income tax returns.
• Refunds being withheld until the PAN is reactivated.
• Pending returns not being processed.
• TDS/TCS credits may not reflect in Form 26AS.
• TDS/TCS may be deducted at higher rates.

Once the PAN is linked post-deadline, it typically becomes active again within 30 days.

Financial Implications of an Inactive PAN

While existing bank accounts and investments remain safe, an inactive PAN can prevent new financial activities. You may face restrictions on:

• Opening new bank accounts or making fresh investments.
• Trading stocks or updating KYC information.
• Filing taxes on future income, leading to higher TDS rates.

In short, your current assets remain secure, but future transactions may be blocked until PAN reactivation.

How to Link PAN with Aadhaar

Linking PAN to Aadhaar is straightforward via the Income Tax Department portal:

1. Visit the official Income Tax website.
2. Click on Link Aadhaar.
3. Enter your PAN, Aadhaar, and mobile number.
4. Verify using the OTP sent to your registered mobile.
5. If your PAN is inactive, a Rs 1,000 fee must be paid first.
6. Check the linking status under Instant Link → Link Aadhaar Status.

Completing this simple process ensures your PAN remains active, avoids penalties, and maintains smooth financial operations.

Act now to prevent any disruption in your income tax filings, banking activities, or investment transactions.