The Income Tax Department has issued a final reminder for taxpayers to complete the PAN–Aadhaar linking process by December 31, 2025, warning that any Permanent Account Number (PAN) not linked by then will be declared inoperative from January 1, 2026.
According to CBDT Notification No. 26/2025 dated April 3, 2025, individuals whose PAN was originally allotted using an Aadhaar Enrolment ID before October 1, 2024 must mandatorily link it with their permanent Aadhaar number by the end of this year. Failure to comply will result in serious financial and tax-related consequences.
What Happens If PAN Becomes Inoperative?
An inoperative PAN is not cancelled but becomes unusable for all practical purposes. The Income Tax Department has clarified that non-compliance will lead to:
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Inability to file Income Tax Returns (ITR)
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Blocking of pending and future income tax refunds
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Deduction of tax at higher rates (up to 20%) under TDS/TCS provisions
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Restrictions on opening bank accounts, demat accounts, or applying for loans and credit cards
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Possible disruption of ongoing investments such as mutual fund SIPs
Who Needs to Act Immediately?
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Individuals who obtained PAN using an Aadhaar Enrolment ID before October 1, 2024
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PAN holders who missed the earlier June 30, 2023 deadline
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Students, homemakers, or non-earning individuals who still hold a PAN card
The Income Tax Department has reiterated that holding a PAN automatically makes linking mandatory unless the person falls under an exempt category.
PAN–Aadhaar Linking: What You Need
Before starting the process, taxpayers should keep the following ready:
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Valid PAN card
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Aadhaar number
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Mobile number linked with Aadhaar (for OTP verification)
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Payment of ₹1,000 penalty, if applicable
Online Linking Process Explained
Step 1: Pay the Mandatory Fee (if applicable)
Taxpayers who have not already paid the penalty must do so through the Income Tax e-Filing portal using the e-Pay Tax option. The ₹1,000 amount is auto-filled under “Other Receipts (500)” after selecting the relevant assessment year.
Step 2: Submit the Linking Request
Once payment is verified—usually within four to five working days—taxpayers can submit the PAN–Aadhaar linking request by validating details and completing OTP authentication.
Step 3: Check Linking Status
The status can be checked instantly on the e-Filing portal using the “Link Aadhaar Status” option, both with and without logging in.
Offline Options Also Available
For those unable to access the portal, the department offers offline alternatives:
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SMS Method: Send
UIDPAN <Aadhaar> <PAN>to 567678 or 56161 (subject to exact data match). -
Service Centre Visit: PAN service centres run by NSDL (Protean) or UTIITSL can assist through manual verification using the Annexure-I form, including biometric authentication if required.
Additional service charges may apply for corrections in PAN or Aadhaar details.
Important Deadlines at a Glance
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December 31, 2025: Final deadline for PAN holders allotted using Aadhaar Enrolment ID
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January 1, 2026: Unlinked PANs become inoperative
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Penalty for delayed linking: ₹1,000
Who Is Exempt?
PAN–Aadhaar linking is not mandatory for:
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Non-Resident Indians (NRIs)
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Individuals aged 80 years or above
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Residents of Assam, Jammu & Kashmir, and Meghalaya
Bottom Line
With just days left before the year-end deadline, the Income Tax Department has urged taxpayers not to delay this one-time compliance. An inoperative PAN can trigger a financial freeze affecting banking, investments, and tax filings. Verifying your PAN–Aadhaar status now could save significant inconvenience in 2026.
Taxpayers are advised to rely only on official instructions and user manuals available on the Income Tax Department’s e-Filing portal.