If you are among those who have still not linked their PAN card with Aadhaar, it is time to act. According to the Ministry of Finance, if you fail to link your PAN and Aadhaar by 31 December 2025, your PAN card will
become ‘inoperative’ from 1 January 2026.
This means your PAN will continue to exist but will not be valid for banking, income tax, or financial transactions.
As per the government notification, anyone who was issued a PAN before 1 October 2024 must inform the Income Tax Department of their Aadhaar number by the end of 2025. The government has already extended the deadline several times, but this time, it appears that no further extensions are likely.
What Happens if You Do Not Link PAN and Aadhaar?
- You will not be able to file Income Tax Returns (ITR).
- Your tax refunds will be withheld.
- TDS/TCS credits will not appear in Form 26AS.
- The Income Tax Department will not process your returns.
- Higher tax deductions may apply.
- KYC updates and investment-related processes may be blocked.
Will your Salary or Bank Account be Affected?
If your PAN becomes inoperative, your salary and bank accounts will not be frozen, nor will your existing fixed deposits or mutual funds be immediately affected. However, you will not be able to make new investments, trade in shares, or update your KYC, which could delay or restrict your financial activities.
How to link PAN with Aadhaar?
- Visit the Income Tax Department’s website at www.incometax.gov.in
- Click on ‘Link Aadhaar’ under Quick Links.
- Enter your PAN, Aadhaar number, and mobile number.
- Verify using OTP.
- If your PAN is inactive, pay the ₹1000 linking fee.
- After successful linking, check the status under ‘Quick Links – Link Aadhaar Status’.
