PAN-Aadhaar linking: What taxpayers must do before December 31, 2025. What happens if you don’t
The Central Board of Direct Taxes (CBDT) has issued a directive targeting individuals who obtained their PAN using an Aadhaar enrolment ID instead of their actual Aadhaar number. Such PAN holders must complete Aadhaar-PAN linking by December 31, 2025.
- Dec 26, 2025,
- Updated Dec 26, 2025 9:40 PM IST
For millions of taxpayers, linking Permanent Account Number (PAN) with Aadhaar remains a crucial compliance requirement under India’s income tax framework. While Aadhaar-PAN linking is now completed automatically for new PAN applicants at the time of issuance, a specific category of existing PAN holders still faces a fresh deadline.
As per Section 139AA of the Income Tax Act, 1961, every individual who has been allotted a PAN and is eligible to obtain an Aadhaar number must ensure the two are linked. Failure to do so can render the PAN “inoperative”, severely disrupting financial and tax-related activities.
Who needs to link PAN with Aadhaar by Dec 31?
The Central Board of Direct Taxes (CBDT) has issued a directive targeting individuals who obtained their PAN using an Aadhaar enrolment ID instead of their actual Aadhaar number. Such PAN holders must complete Aadhaar-PAN linking by December 31, 2025. Officials have clarified that this deadline does not apply universally. PANs issued using valid Aadhaar numbers are governed by earlier compliance timelines.
What happens if PAN becomes inoperative?
If Aadhaar is not linked within the prescribed timeline, the PAN may become inoperative from January 1, 2026, leading to widespread restrictions across tax filing, banking and investment activities.
Key consequences include:
- Income tax returns cannot be filed and refunds may be blocked
- Form 15G and Form 15H submitted with an inoperative PAN will not be accepted
- Existing Form 15G/H will become invalid until PAN is reactivated
- Demat account opening and transactions may be restricted under NSDL and CDSL rules
- Investment in RBI bonds will not be permitted
- SEBI-regulated accounts such as ISAs may face operational restrictions
In essence, an inoperative PAN can significantly disrupt an individual’s financial footprint.
Is Aadhaar-PAN linking free?
No. Individuals submitting a PAN-Aadhaar linking request are required to pay a non-refundable fee of ₹1,000. This fee applies to cases where linking is done after earlier deadlines.
However, experts suggest that individuals covered under the December 31, 2025 directive — specifically those who used an Aadhaar enrolment ID — may not face a penalty if they complete linking within the stipulated period. Official clarification from the CBDT is still awaited.
How to link PAN with Aadhaar online
The Income Tax Department offers a simple online process that does not require logging in:
- Visit the Income Tax e-filing portal
- Click on “Link Aadhaar” under the Quick Links section
- Enter PAN, Aadhaar number and name exactly as per Aadhaar
- Validate details using the OTP sent to the Aadhaar-registered mobile number
- If applicable, pay the ₹1,000 fee via e-Pay Tax under the relevant minor head
- Submit the request
A confirmation message is generated upon submission, and the linkage status usually reflects on the portal within three to five working days.
How to check PAN-Aadhaar link status
Taxpayers can verify their linking status online by entering their PAN and Aadhaar details on the “Link Aadhaar Status” page of the Income Tax portal.
Alternatively, status can be checked via SMS by sending: UID PAN to 567678 or 56161.
Offline linking option available
For those unable to complete the process online, Aadhaar–PAN linking can also be done offline by visiting NSDL or UTIITSL centres. Applicants must carry copies of PAN and Aadhaar along with proof of fee payment, if applicable. Biometric verification may be required.
Common issues taxpayers should watch out for
One of the most frequent hurdles is a mismatch in names or personal details between PAN and Aadhaar records. Authorities advise correcting such discrepancies through the Protean eGov portal (for PAN) or UIDAI (for Aadhaar) before attempting linkage. Aadhaar details, especially mobile numbers, should also be updated to enable OTP-based authentication.
With the December 31, 2025 deadline approaching for a specific group of PAN holders, experts advise early compliance to avoid last-minute glitches and potential financial disruptions. An inoperative PAN can freeze multiple aspects of an individual’s financial life, making timely Aadhaar-PAN linking not just a regulatory requirement, but a practical necessity.
For millions of taxpayers, linking Permanent Account Number (PAN) with Aadhaar remains a crucial compliance requirement under India’s income tax framework. While Aadhaar-PAN linking is now completed automatically for new PAN applicants at the time of issuance, a specific category of existing PAN holders still faces a fresh deadline.
As per Section 139AA of the Income Tax Act, 1961, every individual who has been allotted a PAN and is eligible to obtain an Aadhaar number must ensure the two are linked. Failure to do so can render the PAN “inoperative”, severely disrupting financial and tax-related activities.
Who needs to link PAN with Aadhaar by Dec 31?
The Central Board of Direct Taxes (CBDT) has issued a directive targeting individuals who obtained their PAN using an Aadhaar enrolment ID instead of their actual Aadhaar number. Such PAN holders must complete Aadhaar-PAN linking by December 31, 2025. Officials have clarified that this deadline does not apply universally. PANs issued using valid Aadhaar numbers are governed by earlier compliance timelines.
What happens if PAN becomes inoperative?
If Aadhaar is not linked within the prescribed timeline, the PAN may become inoperative from January 1, 2026, leading to widespread restrictions across tax filing, banking and investment activities.
Key consequences include:
- Income tax returns cannot be filed and refunds may be blocked
- Form 15G and Form 15H submitted with an inoperative PAN will not be accepted
- Existing Form 15G/H will become invalid until PAN is reactivated
- Demat account opening and transactions may be restricted under NSDL and CDSL rules
- Investment in RBI bonds will not be permitted
- SEBI-regulated accounts such as ISAs may face operational restrictions
In essence, an inoperative PAN can significantly disrupt an individual’s financial footprint.
Is Aadhaar-PAN linking free?
No. Individuals submitting a PAN-Aadhaar linking request are required to pay a non-refundable fee of ₹1,000. This fee applies to cases where linking is done after earlier deadlines.
However, experts suggest that individuals covered under the December 31, 2025 directive — specifically those who used an Aadhaar enrolment ID — may not face a penalty if they complete linking within the stipulated period. Official clarification from the CBDT is still awaited.
How to link PAN with Aadhaar online
The Income Tax Department offers a simple online process that does not require logging in:
- Visit the Income Tax e-filing portal
- Click on “Link Aadhaar” under the Quick Links section
- Enter PAN, Aadhaar number and name exactly as per Aadhaar
- Validate details using the OTP sent to the Aadhaar-registered mobile number
- If applicable, pay the ₹1,000 fee via e-Pay Tax under the relevant minor head
- Submit the request
A confirmation message is generated upon submission, and the linkage status usually reflects on the portal within three to five working days.
How to check PAN-Aadhaar link status
Taxpayers can verify their linking status online by entering their PAN and Aadhaar details on the “Link Aadhaar Status” page of the Income Tax portal.
Alternatively, status can be checked via SMS by sending: UID PAN to 567678 or 56161.
Offline linking option available
For those unable to complete the process online, Aadhaar–PAN linking can also be done offline by visiting NSDL or UTIITSL centres. Applicants must carry copies of PAN and Aadhaar along with proof of fee payment, if applicable. Biometric verification may be required.
Common issues taxpayers should watch out for
One of the most frequent hurdles is a mismatch in names or personal details between PAN and Aadhaar records. Authorities advise correcting such discrepancies through the Protean eGov portal (for PAN) or UIDAI (for Aadhaar) before attempting linkage. Aadhaar details, especially mobile numbers, should also be updated to enable OTP-based authentication.
With the December 31, 2025 deadline approaching for a specific group of PAN holders, experts advise early compliance to avoid last-minute glitches and potential financial disruptions. An inoperative PAN can freeze multiple aspects of an individual’s financial life, making timely Aadhaar-PAN linking not just a regulatory requirement, but a practical necessity.