PAN Card To Get Deactivated By 2026 If Not Linked With Aadhaar; Here's How To Link

Taxpayers are facing a deadline, as linking the Permanent Account Number (PAN) with Aadhaar is now mandatory. Failure to complete this by December 31, 2025, will result in your PAN becoming inoperative starting January 1, 2026. An inoperative PAN is more than just a paperwork issue, as it can lead to one being unable to file their Income Tax Returns (ITR). Furthermore, any pending tax refunds will be put on hold, and there will be difficulties in conducting high-value banking and financial transactions.

According to a Ministry of Finance notification (April 3, 2025), a specific group must take immediate action: Individuals who received their PAN using an Aadhaar Enrolment ID before October 1, 2024. Once your permanent Aadhaar number is issued, you must officially inform the Income Tax Department. Even if your PAN was generated via an enrolment ID, the final link to the actual Aadhaar number must be finalised by December 31, 2025, cutoff.

How to Comply?

The process can be completed online via the Income Tax e-filing portal. Users fall under a specifically designated category that allows for a quick and seamless linking process once the Aadhaar number is in hand. Failure to link your PAN and Aadhaar by the deadline will trigger an "inoperative" status, leading to severe financial restrictions. Here is a breakdown of the consequences and the steps required to remain compliant.

If your PAN is not linked by December 31, 2025, the following services will be disrupted. You will be unable to file or verify your Income Tax Returns (ITR). All pending tax refunds will be withheld and remain unprocessed. TDS and TCS will be deducted at significantly higher rates and may not be reflected in your Form 26AS. While existing bank accounts remain functional, you will be blocked from opening new accounts, making fresh investments, trading, or updating KYC details until the PAN is reactivated.

How to Link Your PAN and Aadhaar?

The linking service is available to all individual taxpayers through the Income Tax e-filing portal, regardless of whether you have a registered account.

• Visit the Portal: Go to the official Income Tax website and select “Link Aadhaar”.
• Enter Details: Provide your PAN, Aadhaar number, and registered mobile number.
• OTP Verification: Enter the One-Time Password (OTP) sent to your mobile.
• Penalty: If your PAN is already inoperative, you must pay a ₹1,000 penalty before the linking can be processed.

Important Factors

Your name, gender, and date of birth must be identical on both documents. If there is a mismatch, first you must correct the details with the UIDAI or NSDL. Certain groups, including NRIs, senior citizens (aged 80), and residents of specific states, may be exempt; however, you must verify your status on the portal.

Heavy server traffic is expected as the deadline approaches. Completing the process early will help you avoid technical glitches and the mandatory penalty. Failure to link your PAN and Aadhaar by the deadline will generate an "inoperative" status, leading to severe financial restrictions. Here is a breakdown of the consequences and the steps required to remain compliant.

Also Read: Aadhaar Authentication Not Mandatory for ESCI Benefits, Says Labour Ministry