The government has made linking PAN with Aadhaar mandatory for all individuals.
A fresh directive requires specific PAN holders to complete the process by December 31, 2025.
Failing to do so will make your PAN inoperative from January 1, 2026, affecting income tax filing, banking, investments, and other financial transactions.
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Who Must Link PAN with Aadhaar?
According to Section 139AA(2A) of the Income Tax Act, linking is compulsory for individuals who received a PAN using an Aadhaar enrolment ID before October 1, 2024.
This rule applies to anyone who:
Files income tax returns
Conducts banking or investment transactions
Trades in stocks, mutual funds, or high-value financial transactions
If your PAN remains unlinked, it will be inoperative, leading to:
Blocked ITR filing and refunds
Higher TDS/TCS deductions
Rejection of Forms 15G/15H
KYC failures for banks, mutual funds, or stock trading
Refunds being withheld
Special Deadline for PAN Issued Using Aadhaar Enrolment ID
The CBDT notification (April 3, 2025) clarified that individuals who obtained PAN via Aadhaar enrolment ID must link it with their actual Aadhaar number by December 31, 2025.
No additional penalty for linking within this period
For other PAN holders, a Rs 1,000 fee under Section 234H continues to apply for late linking
How to Link PAN with Aadhaar
Linking is simple and can be done online:
Visit the Income Tax e-filing portal
Click on “Link Aadhaar” (login not required)
Enter PAN, Aadhaar number, and name
Verify via OTP
If required, pay the Rs 1,000 fee using e-Pay Tax
Submit the request
Status is usually updated within 3–5 days.
Reactivating an Inoperative PAN
If your PAN has already become inoperative:
Log in to the Income Tax portal
Pay the Rs 1,000 penalty
Complete PAN-Aadhaar linking
Your PAN generally becomes operative again within 30 days. Avoid major financial transactions during this period to prevent KYC issues.
Key Takeaway
The December 31, 2025 deadline is crucial. Linking your PAN with Aadhaar on time ensures smooth access to banking, investments, and tax services.
If your PAN was issued using an Aadhaar enrolment ID, this is your final opportunity to act.
Don’t wait—complete the linking today to avoid disruptions and penalties.