Summary of this article
PAN inactive if not linked by deadline
Higher TDS and blocked financial transactions
Online linking process is quick and simple
The government has time and time again, reiterated that taxpayers must link their Permanent Account Number (PAN) with their respective Aadhaar. This time, the latest deadline to link PAN with Aadhaar is December 31, 2025. Failure to link PAN with Aadhaar by this date will result in the inactivation of PAN. While PANs issued after October 1, 2025, already came linked with Aadhaar, those issued previously have to be linked by the PAN holders.
Why PAN–Aadhaar Linking Is Mandatory
PAN is one of the most crucial documents for filing income tax returns (ITRs), opening new bank accounts, and investing in financial instruments. Elsewhere, Aadhaar serves as a unique identity proof, and linking these two documents helps the Income Tax Department in tracking financial transactions and curb tax-related fraud and evasion.
What Will Happen If You Don’t Get PAN-Aadhaar Linked
If a person fails to link these two documents, it will have significant consequences, such as;
Inoperative PAN: The PAN card will not be functional anymore.
Higher Deductions: Banks and employers may deduct tax at a higher rate.
Can’t File ITR: Filing ITRs will not be possible with a deactivated PAN.
Problems in Banking and Investments: Opening accounts, investing in mutual funds, shares or participating in monetary schemes will not be possible.
In order to have your financial activity functioning properly, taxpayers must complete the linking process.
How To Link Aadhaar With PAN Online
Taxpayers who have yet to link these two documents can do so on the Income Tax e-filing portal by following these simple steps.
Visit the official e-filing website of the Income Tax Department.
Under the quick links, you will find a ‘Link Aadhaar’ option, where you can further continue the process.
A pop-up will show up; proceed with the permissions, and validate with the CAPTCHA code and OTP, which will be sent to your registered mobile number. Enter the OTP and click “Link Aadhaar.”
Another pop-up will show up, asking for PAN-related information; fill those in and complete the process.
Who All Are Exempted From This Process
Certain individuals are exempted from this process, which includes non-resident Indians (NRIs), individuals above 80 years of age, residents of Assam, Meghalaya, and Jammu and Kashmir.
With the deadline coming close, taxpayers must PAN with Aadhaar at the earliest to avoid penalties and other financial inconvenience.
