The clock is ticking for millions of taxpayers across India. With the final deadline to link your Permanent Account Number (PAN) with Aadhaar fast approaching, there are now less than ten days left to complete this mandatory procedure. The Income Tax Department has set 31 December 2025 as the last date for individuals whose PAN was allotted using an Aadhaar number before 1 October 2024. Failure to link by this date will have significant financial and operational repercussions.
What Happens If You Miss the 31 December Deadline?
If your PAN and Aadhaar remain unlinked by the end of this year, your PAN will become inoperative from 1 January 2026. This is not a mere formality but a status that triggers a cascade of difficulties. It is crucial to understand that even if you link now, you are required to pay a late fee of ₹1,000, as the original linking date has already passed for this group of taxpayers.
Severe Consequences of an Inoperative PAN
An inoperative PAN will disrupt your financial life in multiple ways. The immediate and most critical impact will be on your income tax compliance. Filing your Income Tax Return (ITR) will become problematic, with a high chance of the IT Department rejecting your return submission.
Beyond taxation, your banking and investment activities will face severe restrictions:
- You will be subject to a higher rate of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS).
- Financial credits will not reflect in your Form 26AS, and TDS/TCS certificates will not be issued to you.
- Opening a new bank account or obtaining new credit/debit cards will be impossible.
- Cash deposits exceeding ₹50,000 in a bank or any single bank transaction over ₹10,000 will be blocked.
- Know Your Customer (KYC) processes will fail, and services from mutual funds and stockbrokers are likely to be suspended.
Step-by-Step Guide to Link PAN with Aadhaar Online
To avoid these complications, follow this online process on the Income Tax e‑filing portal immediately:
- Begin by visiting the official Income Tax e‑filing website. You must first pay the ₹1,000 penalty fee unless already done.
- Navigate to the 'Quick Links' section and select the 'Link Aadhaar' option.
- Enter your 12-digit Aadhaar number, your PAN, and your name exactly as it appears on your Aadhaar card. Click on 'Validate'.
- Enter the One-Time Password (OTP) sent to your Aadhaar-registered mobile number and proceed to make the ₹1,000 payment as directed.
- Once your payment is successfully verified, wait for a few days for the system to update.
- Return to the e-filing portal and go to the 'Link Aadhaar' option under 'Quick Links' again. Re-enter your details.
- A confirmation pop-up stating “Your payment details are verified” should appear. Click 'Continue'.
- Re-enter your name as per Aadhaar and your mobile number for final verification.
- Check all the details, agree to the terms, and click on 'Link Aadhaar'.
- Enter the 6-digit OTP received on your mobile and click 'Validate' to complete the process.
The government has made it clear that this deadline is firm. For other individuals who were required to link by 31 May 2024, their PANs would already be inoperative. Therefore, if you fall under the 31 December 2025 deadline, this is your final chance to regularize your PAN status and ensure seamless financial transactions and tax compliance in the coming year.
