The Income Tax Department has once again urged taxpayers to link their Aadhaar number with their Permanent Account Number (PAN), warning of serious consequences if the process is not completed within the prescribed timeline. As per the latest notification issued by the Central Board of Direct Taxes (CBDT), December 31, 2025, has been set as the final deadline for Aadhaar–PAN linking.

The move is aimed at strengthening identity verification, curbing the issuance of duplicate PANs, and ensuring greater transparency in the tax system.

Revised deadline timeline

Initially, the CBDT had fixed June 30, 2023, as the cut-off date for Aadhaar–PAN linking. This was later extended to May 31, 2024, with a late fee of ₹1,000 for non-compliance. Subsequently, through a notification dated April 3, 2025, the government granted a final extension until December 31, 2025.

From January 1, 2026, PANs that are not linked with Aadhaar will become inoperative.

Fee implications

Experts note that taxpayers who complete the linking process within the December 2025 deadline are unlikely to face any additional penalty. However, individuals who missed the earlier deadlines may still be required to pay a late fee of ₹1,000 under Section 234H of the Income-tax Act, 1961.

Consequences of not linking Aadhaar and PAN

Failure to link Aadhaar with PAN by the deadline can lead to multiple complications, including:

PAN becoming inoperative from January 1, 2026
Higher TDS and TCS deductions under Sections 206AA and 206CC
Inability to submit Form 15G or Form 15H for non-deduction of TDS
Suspension of services by banks, mutual funds, and stockbrokers due to invalid KYC
Delay or rejection of income tax refunds
A penalty of ₹1,000 and additional verification requirements for PAN reactivation

Documents required for linking

Taxpayers should keep the following details ready before initiating the process:

Valid PAN
Aadhaar number
Mobile number linked with Aadhaar

Step-by-step process to link Aadhaar with PAN

Visit the official Income Tax e-filing portal.
Click on the “Link Aadhaar” option under the “Quick Links” section.
Enter PAN, Aadhaar number, and name as per Aadhaar records.
Click on “Validate”.
Enter the OTP received on the Aadhaar-registered mobile number.
Submit the request.

Once submitted, a confirmation message will be displayed, and the updated status is usually reflected on the portal within three to five working days.

Taxpayers who are linking Aadhaar and PAN after missing earlier deadlines will need to pay the prescribed late fee before submitting the request.

With the final deadline approaching, authorities advise taxpayers to complete the process well in advance to avoid last-minute issues and disruption of financial services.