Linked PAN and Aadhaar yet? Today is last date; here's what happens from Jan 1

December 31, 2025, is the deadline to link Aadhaar with the Permanent Account Number (PAN). If anyone fails to link both IDs, the PAN will be considered inoperative from January 1, 2026, resulting in severe disruptions in several financial transactions. Here are some FAQs answered.

Why is it important to link both?

According to Section 139AA of the Income Tax Act, 1961, it is mandatory to link PAN with Aadhaar for most individuals who hold a PAN and are eligible for Aadhaar. If the linking is not completed within the prescribed period, the PAN card will be considered inoperative under Rule 114AAA and invalid for several financial activities under the Income Tax Act.

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Though the PAN may not be considered cancelled, users who fail to link within the deadline will be charged Rs 1,000 as a late fee when they link both cards after December 31, 2025.

What are the consequences?

When PAN is not linked with Aadhaar, one may not be able to file Income Tax Returns (ITR). According to reports, any ITR submitted without completing the linking may be considered invalid. Tax refunds are expected to be delayed or blocked. Taxpayers could also incur interest or late fees for late or invalid ITR filings.

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It is to be noted that higher tax will be deducted at source or collected, and activities that require PAN details, including investments, bank transactions, and the purchase of securities, may result in processing delays or face disruptions.

Who must link PAN with Aadhaar?

It is required for every individual, even those who are not currently filing tax returns, to link Aadhaar and PAN. As per Income Tax Department guidelines, people with income below the taxable limit, including homemakers, must comply with the rule to avoid future issues.

Who are exempt?

Aadhaar eligibility is a prerequisite for mandatory linking with PAN. However, for NRIs, linking is not mandatory. That said, for those who have obtained an Aadhaar number voluntarily, linking is mandatory.

Foreign nationals and non-citizens also qualify for exemption.

Residents of Assam, Meghalaya, and Jammu and Kashmir are also exempt from the exercise of linking both IDs.

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Super senior citizens aged 80 or above are exempt.

Minors with PAN need not link until they turn 18. However, as soon as they become adults, they need to link Aadhaar and PAN.

PAN–Aadhaar linking is assessed at an individual level. In joint bank or demat accounts, transactions may be disrupted if even one holder’s PAN becomes inoperative due to non-linkage. In the case of a deceased PAN holder, family members are not required to complete the linkage. Instead, the PAN should be formally surrendered through official channels to avoid future compliance or transaction issues.

How to link PAN and Aadhaar

Visit the official Income Tax e-filing portal at www.incometax.gov.in/iec/foportal/. In the “Quick Links” section, select the “Link Aadhaar” option, enter your PAN and Aadhaar numbers, and click on the “Link Aadhaar” option. You will receive a six-digit OTP on the registered mobile number. After entering the OTP, submit the request for PAN-Aadhaar linking.

To check the status of the PAN-Aadhaar link, visit the Income Tax e-Filing Portal and select the “Link Aadhaar Status” option. After providing your PAN and Aadhaar details, the status of the linkage will appear on the screen.

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It is to be noted that common mismatches in Aadhaar–PAN details, such as spelling errors, date of birth, and gender discrepancies, need to be fixed before linking the two cards. The system will not consider PAN and Aadhaar as properly linked if the data on both IDs do not match.

Corrections to PAN details can be made via NSDL/Protean or UTIITSL. For Aadhaar errors, changes can be made through the UIDAI portal or by visiting the nearest enrolment centre with the necessary documents.