The Income Tax (I-T) Department of India has mandated linking Aadhaar with Permanent Account Number (PAN) to ensure proper identity verification and curb duplicate PAN issuance. As per the latest notification issued by the Central Board of Direct Taxes (CBDT), the final deadline to link Aadhaar with PAN is December 31, 2025.
Failure to comply will make the PAN inoperative from January 1, 2026, affecting banking, investments, and income tax filings.
Aadhaar-PAN Linking Deadline Explained
- Original deadline: June 30, 2023
- Extended deadline: May 31, 2024 (with ₹1,000 penalty)
- Final deadline: December 31, 2025
According to a CBDT notification dated April 3, 2025, taxpayers who do not complete Aadhaar-PAN linking by the December deadline will have their PAN rendered inoperative.
Experts note that no late fee will apply if linking is completed within the December 2025 deadline, as per data shared by Protean eGov Technologies, a Government of India company. However, individuals who missed earlier deadlines may still need to pay a ₹1,000 penalty under Section 234H of the Income-tax Act, 1961.
What Happens If Aadhaar and PAN Are Not Linked?
Failure to link Aadhaar with PAN by December 31, 2025 can result in the following consequences:
- PAN becomes inoperative from January 1, 2026
- Higher TDS/TCS deduction under Sections 206AA and 206CC
- Inability to submit Form 15G/15H for TDS exemption
- Banks, mutual funds and stockbrokers may suspend services due to invalid KYC
- Income tax refunds will not be processed
- PAN reactivation will require ₹1,000 payment and additional verification
Documents Required for Aadhaar-PAN Linking
- Valid PAN
- Aadhaar number
- Mobile number linked with Aadhaar (for OTP verification)
How to Link Aadhaar and PAN: Step-by-Step Guide
Follow these simple steps to complete the linking process online:
Step 1: Visit the official Income Tax portal
👉 https://www.incometax.gov.in/iec/foportal/
Step 2: Click on “Link Aadhaar” under the Quick Links section
Step 3: Enter:
- PAN
- Aadhaar number
- Name as per Aadhaar
Step 4: Click on “Validate”
Step 5: Enter the OTP received on your Aadhaar-linked mobile number
Step 6: Submit the request
A confirmation message will appear, and the updated status will reflect on the portal within 3–5 working days.
Note: If you are linking Aadhaar and PAN after missing an earlier deadline, you may need to select and pay the ₹1,000 penalty option before final submission.
Key Takeaway
With just days left before the final Aadhaar-PAN linking deadline, taxpayers are advised to complete the process immediately to avoid PAN deactivation, higher tax deductions, refund delays, and disruption of financial services.
