The Income Tax (I-T) Department of India has mandated taxpayers to link their Aadhaar number with their Permanent Account Number (PAN), to avoid any consequences while filing their returns. As per the official announcement, the final date of linking Aadhaar with PAN is 31st December 2025.
Taxpayers who are looking to link their PAN and Aadhaar should note that the linking involves connecting an individual’s PAN with their Aadhaar number. This move seeks to confirm the identity of these individuals and prevent duplicate PAN issuance in the country.
Aadhaar-PAN linking deadline
The Central Board of Direct Taxes (CBDT) initially fixed 30 June 2023 as the deadline for people to link their PAN with their Aadhaar number. This date was later extended to 31 May 2024 with a late fine of ₹1,000 per individual.
According to the latest CBDT notification, on 3 April 2025, the authority fixed 31 December 2025 as the final deadline for the linking process. If taxpayers fail to comply with the government mandate, then this will result in their PAN being in operational, effective from 1 January 2026.
Experts indicate that people will not be subject to any late fee if they complete the linking process within the December deadline, as per Protean data, a Government of India company.
However, for PAN holders who missed their earlier deadline, they are likely to still face a late fee of ₹1,000 under Section 234H of the Income-tax Act, 1961.
What if you fail to link Aadhaar and PAN?
If an individual fails to link their Aadhaar and PAN, then they will face the following consequences —
- PAN will become in operational effective from 1 January 2026.
- Higher TDS/TCS deductions under Section 206AA and 206 CC of the I-T Act.
- Taxpayers will also face disruption while filing their Form 15G/15H, which is necessary for non-deduction of TDS.
- Banks, mutual funds, and stockbrokers are likely to suspend their services for the investors due to invalid Know Your Customer (KYC).
- If the Aadhaar and PAN are not linked by the December deadline, then reactivating their PAN will attract a payment of ₹1,000 and additional verification steps.
- Refunds of the taxpayers will not be processed due to an inactive PAN, hence they will not be paid back for their filed returns.
Key documents to link Aadhaar and PAN
- Valid Permanent Account Number (PAN)
- Individual’s Aadhaar card number
- Working mobile phone number
How to link Aadhaar and PAN?
To link your Aadhaar number with your PAN number, please follow the steps mentioned below —
Step 1: Visit the official Income Tax portal.
Direct Link here – https://www.incometax.gov.in/iec/foportal/
Step 2: Select the “Link Aadhaar” option under the “Quick Links” section.
Step 3: You will now need to enter your PAN, Aadhaar number, and name (as per Aadhaar card)
Step 4: Click on the “Validate” option
Step 5: Enter the One-time password (OTP) sent to your Aadhaar-registered mobile number on the website.
Step 6: Submit the form after entering all the details.
Your screen will display a confirmation message, and the status updates will start reflecting on the portal in the next 3-5 working days.
People should also note that if you are linking your Aadhaar and PAN after missing the deadline, then you will also be mandated to pay a ₹1,000 fine. Hence, you will have to select the “ ₹500 Fee for delay in linking PAN with Aadhaar” before submitting.
