PAN-Aadhaar Linking Deadline 2025

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The Government of India has once again reminded taxpayers about the mandatory requirement to link their Permanent Account Number (PAN) with their Aadhaar card. This process has been made compulsory for all individuals who were allotted a PAN using their Aadhaar enrolment ID before October 1, 2024.

Tax advisory platform TaxBuddy has issued a strong warning that failing to complete this process before the official deadline—December 31, 2025—will result in your PAN becoming inactive from January 1, 2026.

Why PAN–Aadhaar Linking is Important

According to TaxBuddy:

“Your PAN card will be deactivated from January 1, 2026. You won’t be able to file your Income Tax Return (ITR) or receive any refunds. Even your salary credit or SIP transactions might fail.”

This highlights how critical it is to complete the linking process in time. PAN is required for almost all major financial and tax-related activities in India—so an inactive PAN can cause serious disruptions.

Who Must Link PAN with Aadhaar?

As per the Ministry of Finance notification dated April 3, 2025:

Anyone who received their PAN using the Aadhaar enrollment ID before October 1, 2024 must update the Income Tax Department with their Aadhaar number by December 31, 2025.

This means:

✔ If your PAN was generated using your Aadhaar enrolment number
✔ And you now have your Aadhaar issued

➡ Linking PAN with Aadhaar is mandatory.

The government has already extended the deadline multiple times, but experts say another extension is unlikely. Therefore, taxpayers should complete the process at the earliest.

Consequences of Not Linking PAN with Aadhaar

If you fail to complete PAN–Aadhaar linking by December 31, 2025, here’s what will happen from January 1, 2026:

1. PAN Becomes Inactive

Your PAN will no longer be usable in any government, tax, or financial process.

2. You Cannot File ITR

Your Income Tax Return cannot be filed or verified.

3. No Tax Refunds

Refunds already due will be delayed until PAN is reactivated.

4. Pending ITRs Will Not Be Processed

Any ITR awaiting approval will remain unprocessed.

5. TDS/TCS Not Reflected in Form 26AS

Your tax credit statement will stop updating.

6. Higher Tax Deduction

TDS/TCS will be deducted at the highest possible rate.

7. Reactivation Takes Time

PAN can be reactivated only after linking with Aadhaar — and the process may take up to 30 days.

Financial Impact of an Inactive PAN

Even though your existing money and investments remain safe, an inactive PAN means:

⛔ No new investments
⛔ No share trading
⛔ No KYC updates
⛔ Salary credits may fail
⛔ SIP auto-debits may stop
⛔ No opening of new bank accounts
⛔ No redemption of mutual funds or FD closure
⛔ No ITR filing or tax compliance

In short — your entire financial activity comes to a standstill until PAN is reactivated.

How to Link PAN with Aadhaar (Step-by-Step Guide)

Linking your PAN and Aadhaar is simple and can be completed online in a few minutes. Here’s how:

Step 1:

Visit the official Income Tax India website:
👉 https://www.incometax.gov.in

Step 2:

Click on “Link Aadhaar” on the homepage.

Step 3:

Enter the following details:

PAN number
Aadhaar number
Mobile number

Step 4:

Complete the OTP verification.

If Your PAN Is Already Inactive

You must first pay the ₹1,000 linking fee before proceeding.

Step 5:

After linking, you can check the status here:
Quick Links → Link Aadhaar Status

The process is simple, but delaying it can cause major financial inconvenience.

Conclusion

The PAN–Aadhaar linking deadline of December 31, 2025 is crucial for all taxpayers in India. If not linked on time, your PAN will become inactive from January 1, 2026, causing serious hurdles in tax filing, salary credit, investments, and banking activities.

To avoid any financial disruption, make sure you complete the process as soon as possible.

PAN Aadhaar Linking Deadline 2025: Government Confirms PAN Will Become Inactive from January 1, 2026