New Delhi: The Central Board of Direct Taxes (CBDT) has issued a fresh guideline for linking Aadhaar with Permanent Account Numbers (PAN), extending the final deadline for certain categories of taxpayers to December 31, 2025.
According to the Income Tax Department, individuals who obtained their PAN using an Aadhaar enrolment ID before October 1, 2024, must now link their PAN with their actual Aadhaar number before the new deadline. After January 1, 2026, such PAN cards will become inoperative if not linked.
The government emphasized that Aadhaar – PAN linkage remains a mandatory compliance requirement under Section 139AA of the Income Tax Act, 1961, for all individuals possessing both documents. Only non-residents, Senior citizens aged 80 years or above and residents of Assam, Meghalaya and Jammu & Kashmir are exempt from this rule.
New Rule from July 2025
Starting July 1, 2025, Aadhaar authentication will become mandatory for all new PAN card applications. This step aims to streamline taxpayer identification, prevent duplication and strengthen KYC verification across banking and financial systems.
Consequences for Non-Compliance
The CBDT warned that failure to link PAN and Aadhaar by the stipulated date will lead to the PAN being treated as inoperative. An inoperative PAN cannot be used for filing income tax returns, claiming refunds or conducting high value financial transactions. In such cases, tax will be deducted or collected at double the normal rate and refunds will be withheld until the PAN is reactivated.
How to Link Aadhaar with PAN
Taxpayers can link their Aadhaar and PAN through the official Income Tax e-filing portal by submitting basic details and verifying them through a one time password (OTP) sent to their Aadhaar registered mobile number. A late fee of ₹ 1,000 continues to apply for delayed linkage.
The department advised citizens to ensure that their Name, Date of Birth and Gender match on both documents to avoid rejection.
Public Advisory
The Income Tax Department urged all taxpayers to complete the linking process well before the deadline to avoid last minute technical issues or penalty consequences. It also clarified that once PAN becomes operative after linking, taxpayers can continue to use it normally for all Financial, Investment and Tax related transactions.
