Is your PAN card not yet linked to Aadhaar? Be careful... The government has made it clear that if you don't link your Aadhaar-PAN by December 31, 2025, your PAN will become inactive from January 1, 2026. This means you won't be able to perform many important financial tasks. Nowadays, the PAN card is the most important document for your identity and financial transactions.

Every year, millions of people find themselves in financial trouble due to just this one mistake. So, learn why Aadhaar-PAN linking is necessary, what happens if you don't, and how you can do it online in just a few minutes.

Do these important tasks before December 31.
The Central Board of Direct Taxes (CBDT) has set December 31, 2025, as the deadline for linking PAN-Aadhaar. After this date, those who have not linked their Aadhaar will automatically have their PAN card deactivated. Not having an active PAN card means that features like ITR filing, refund processing, and high-value transactions will be blocked.

Who is not required to link?
Not everyone is required to link their Aadhaar and PAN. The government has exempted certain categories. For example, people above 80 years of age (Super Senior Citizens), Non-Resident Indians (NRIs), residents of Jammu and Kashmir, Assam, and Meghalaya, and those who are not Indian citizens, they are not required to link their Aadhaar and PAN.

What happens if your PAN becomes deactivated?

If you don't link it on time, your PAN card will become "inoperative," meaning it will be disabled. This will impact many of your financial activities.

You won't be able to file your ITR.
You won't receive an income tax refund.
Bank account or mutual fund transactions will fail.
In many cases, higher TDS or TCS will be deducted.
According to the Income Tax Department's rules, an inactive PAN means you haven't "furnished" your PAN, meaning it won't be valid for many important purposes.

Mutual funds and investments will also be affected.
Many people have already suffered losses due to this. Those who didn't have their PAN linked have had their mutual fund redemptions blocked, demat accounts closed, and tax-saving investments blocked. So don't delay this time, or your investments will also be affected.

How to link Aadhaar-PAN online in minutes?
Linking your PAN to Aadhaar is very easy. Here we're going to walk you through the step-by-step process...

All you need to do is visit the Income Tax e-filing portal.
Go to Quick Links or the profile section after logging in and click “Link Aadhaar.”
Enter your PAN and Aadhaar number.
Pay the linking fee of ₹1000 through the e-Pay Tax option and submit.
Your Aadhaar-PAN link will be linked within a few minutes.
How to check the Aadhaar-PAN link status?
After linking, you can check the status on the Income Tax portal. If the PAN is reactivated, your refunds and other financial processes will resume.

Why is it important to link PAN and Aadhaar?
The CBDT recently stated that if you activate your PAN on time, you may be able to recover excess TDS/TCS deducted. The government also says this step will increase transparency in financial transactions and reduce cases of fraud or tax evasion. Furthermore, it links all your bank, tax, and investment details to a unique identity, simplifying the process.

The PAN linking deadline has been extended previously, with the final deadline set for December 31, 2025. A fee of ₹1,000 will be required for linking, and if it's not done by the deadline, your PAN will automatically become inactive.

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