PAN–Aadhaar linking deadline on December 31, 2025: Check linking steps, late fee & what happens next 

PAN-Aadhaar linking last date: As the calendar year winds down, a critical compliance deadline is fast approaching for millions of taxpayers across India. December 31 is the final date to link Permanent Account Number (PAN) with Aadhaar, and missing this deadline could have far-reaching consequences—ranging from blocked income tax filings to disruptions in banking and investment activities.

While the linking process itself is quick and largely online, delays or inaction can prove costly and inconvenient. With authorities signalling that no further extensions will be granted, taxpayers are being urged to act before the year-end rush.

Why linking PAN with Aadhaar is mandatory

The PAN–Aadhaar linkage has been made compulsory to strengthen identity verification within the tax system. By linking the two unique identifiers, the government aims to eliminate duplicate PANs, reduce tax evasion, and improve the accuracy of financial records.

Over the past few years, deadlines were extended multiple times after taxpayers flagged issues such as name mismatches and technical glitches. In 2025, relief was again provided by extending the deadline to December 31—particularly benefiting individuals who were allotted PAN using an Aadhaar enrolment ID prior to October 1, 2024.

However, officials have made it clear that this extension is final. After December 31, unlinked PANs will face restrictions until compliance is completed.

Who needs to complete the linking?

In broad terms, most resident Indian PAN holders are required to link their PAN with Aadhaar. This includes:

Salaried employees

Self-employed professionals and freelancers

Business owners

Investors in shares, mutual funds, bonds, or other financial instruments

Individuals who file, or intend to file, income tax returns

Certain categories are exempt under the Income Tax Act, including non-resident Indians (NRIs), individuals in specific age brackets, and residents of notified regions. However, for the vast majority of taxpayers, PAN–Aadhaar linking is mandatory.

How to link PAN and Aadhaar online

The Income Tax Department has simplified the process through its e-filing portal, making it accessible without logging in.

Visit the Income Tax e-filing portal at https://www.incometax.gov.in
 and click on “Link Aadhaar” under the Quick Links section.

Enter your PAN, Aadhaar number, and name exactly as per Aadhaar records, then click “Validate”.

An OTP will be sent to the mobile number registered with Aadhaar. Enter the OTP to authenticate.

If linking after the deadline, pay the prescribed fee through the “e-Pay Tax” option before submitting the request.

Submit the form. A confirmation message will appear on-screen, and the status is usually updated within three to five working days.

Offline option for linking

Taxpayers who prefer offline assistance can visit authorised NSDL or UTIITSL centres. They must carry copies of PAN and Aadhaar, along with proof of penalty payment if applicable. Biometric verification may be required during the process.

Penalty and consequences of missing the deadline

Currently, a fee of Rs 1,000 is applicable for linking PAN with Aadhaar. While the amount may seem modest, the larger concern is that an unlinked PAN can become inoperative.

An inoperative PAN can prevent individuals from filing income tax returns, opening bank accounts, making high-value financial transactions, or investing in securities and mutual funds. These disruptions often cause far more stress than the penalty itself.

With the December 31 deadline approaching, tax experts advise taxpayers not to wait until the last moment and complete the PAN–Aadhaar linking well in advance to avoid technical delays and year-end congestion.