The clock is ticking! The deadline to link your Permanent Account Number (PAN) with your Aadhaar card is fast approaching. Failure to link these two essential documents by December 31, 2025, will result in your PAN becoming “inoperative” starting from January 1, 2026.
This deadline applies specifically to the remaining group of PAN holders who obtained their PAN using an Aadhaar Enrolment ID (AEID) before October 1, 2024.
Why is this important?
An inoperative PAN is essentially useless for all major financial transactions. Using an inoperative PAN will attract significant penalties and restrict your ability to manage your finances.
If your PAN is deactivated, you will face the following consequences:
- ❌ Cannot File ITR: You will not be able to file your Income Tax Returns.
- ❌ Higher TDS/TCS: You will be subject to higher Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) rates on all applicable transactions.
- ❌ Financial Restrictions: You cannot open new bank accounts, invest in mutual funds or the stock market, or conduct high-value transactions (e.g., property purchases or sales, cash deposits over ₹50,000).
- ❌ No Tax Refunds: Pending tax refunds will not be issued, and no interest will accrue on them.
How to Link Your PAN and Aadhaar in 5 Minutes
The process is straightforward and can be completed online via the official Income Tax e-Filing portal.
Step 1: Visit the official e-Filing portal: https://www.incometax.gov.in/iec/foportal/
Step 2: Click on the “Link Aadhaar” option found under the “Quick Links” section on the homepage.
Step 3: Enter your PAN and Aadhaar numbers.
Step 4: Ensure your name, date of birth, and gender details match exactly on both your PAN and Aadhaar cards.
Step 5: Complete the OTP verification process to submit your linking request.
⚠️ Note: There is a mandatory fee of ₹1,000 to link your Aadhaar with your PAN. This fee must be paid before you can submit the linking request.
Don’t Wait Until the Last Minute!
While an inoperative PAN can be reactivated after linking it to Aadhaar (by paying the ₹1,000 fee), the reactivation process can take up to 30 days. Avoid the last-minute rush and the potential disruption to your financial activities.
Act now and ensure your PAN card remains active!
