PAN-Aadhaar Link Alert: What will happen if PAN-Aadhaar is not linked by December 31?

PAN-Aadhaar Link Last Date: The last date for linking PAN and Aadhaar is December 31, 2025. After this, the PAN will become inactive. This could delay many tasks. Linking PAN and Aadhaar after this deadline will incur a penalty.

PAN-Aadhaar Not Linked Penalty: If you haven't yet linked your PAN and Aadhaar, this news is extremely important for you. The deadline is December 31, 2025. This means you have only one week left. The Income Tax Department has clarified that from January 1, 2026, an unlinked PAN will become completely inoperative. This means you won't be able to file your income tax return or perform many important tasks related to banking, investments, or KYC.

Why is PAN-Aadhaar linking necessary?

According to the Income Tax Department's notification dated April 3, 2025, those whose PAN was issued based on Aadhaar before October 1, 2024, must link their PAN by December 31, 2025. In other cases, the last date for linking PAN and Aadhaar was May 31, 2024. Failure to do so within the stipulated time will result in the PAN becoming inactive.

Will PAN be completely closed after December 31?

If you don't link your PAN with Aadhaar by December 31, 2025, your PAN will become inactive from January 1, 2026. Linking later will also incur a penalty of ₹1,000.

What are the disadvantages of PAN being deactivated?

  • There may be a problem in filing ITR, the return may get rejected.
  • TDS or TCS will be deducted in excess, and its credit will not be reflected in Form 26AS.
  • TDS/TCS certificate will not be available.
  • A new bank account will not be opened.
  • You will not be able to make debit or credit cards.
  • You will not be able to deposit more than ₹50,000 cash in the bank.
  • Bank transactions above ₹10,000 will be affected.
  • KYC may fail.
  • Mutual funds, stock markets and brokers may stop services.

How to link PAN-Aadhaar online?

  • First of all go to Income Tax e-Filing Portal.
  • Go to the Quick Links section on the homepage and click on Link Aadhaar.
  • Enter your PAN, Aadhaar number and name as per Aadhaar and click on Validate.
  • Enter the OTP received on the mobile number linked to Aadhaar.
  • After verification, go to the portal and click on Link Aadhaar in Quick Links.
  • Now a message will appear on the screen, 'Your payment details have been verified.'
  • Now click on Continue.
  • Fill name and mobile number as per Aadhaar, tick all the boxes.
  • Click on Link Aadhaar, enter 6 digit OTP and validate.

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