If PAN–Aadhaar linking has been sitting on your to-do list, the window is closing fast. The final date to link Aadhaar with PAN is December 31, 2025, and from January 1, 2026, unlinked PANs are set to become inoperative. That change may sound technical, but its impact could show up in very everyday places.
As per the latest notification issued by the Income Tax Department on April 3, 2025, individuals whose PAN was allotted using an Aadhaar number before October 1, 2024, are required to complete the linking by the end of this year. For others, the deadline had already passed on May 31, 2024.
An inoperative PAN does not just affect tax paperwork. It can disrupt routine financial activity in ways many people only realise later. Filing an income tax return may become difficult and returns submitted with an inoperative PAN could be rejected.
There may also be higher TDS or TCS deductions, with credits not reflecting in Form 26AS. Access to TDS or TCS certificates could be affected as well.
Banking is another area where problems could surface. Opening a new bank account, getting a credit or debit card, depositing cash above ₹50,000, or carrying out transactions above ₹10,000 may not be permitted. KYC-related services could be restricted, and mutual fund platforms and stockbrokers may pause services linked to the PAN.
Even now, PAN–Aadhaar linking is still allowed, but it comes with a penalty of ₹1,000. This applies because the original deadline has already passed. Paying the penalty does not waive the requirement; it only allows the linking process to move forward.
The process begins on the income tax e-filing portal. If the penalty has not been paid earlier, the ₹1,000 fee needs to be cleared first. Aadhaar number, PAN and name as per Aadhaar must be entered and validated.
An OTP sent to the Aadhaar-linked mobile number is required to complete payment. Once payment details are verified, users need to revisit the portal, re-enter their details, confirm personal information as per Aadhaar and complete the linking using a final OTP. The confirmation may take a few days to reflect.
With January 1 approaching, PAN–Aadhaar linking is no longer just a compliance detail. For many, it could quietly decide whether routine banking, investing and tax-related tasks continue smoothly in the new year.
