If you do not link your PAN with Aadhaar by 31 December 2025, your PAN will become inactive. An inactive PAN will affect filing ITR, receiving tax refunds, and all financial transactions.

The Government of India has issued a warning to taxpayers that if they do not link their PAN card with their Aadhaar card by 31 December 2025, their PAN will be marked as Inactive. This rule especially applies to those whose PAN and Aadhaar were issued before 1 October 2025.

Why is linking important?

• PAN is your financial identity within the tax system.

• Linking with Aadhaar helps prevent duplicate PANs, reduces tax evasion, and ensures transparency in records.

• The government wants every taxpayer to be uniquely identified through a single Aadhaar number to avoid fraud.

Deadline & Rules

• Last date for PAN-Aadhaar linking: 31 December 2025

• If not linked by this date, PAN will become inactive from 1 January 2026.

• With an inactive PAN, you will not be able to file ITR, receive tax refunds, or conduct various banking/investment transactions.

Who needs to link?

• People whose PAN was issued before 1 October 2025

• Individuals who used Aadhaar Enrollment ID when applying for PAN must now link their final Aadhaar number.

What happens if you don’t link?

• You will not be able to file Income Tax Return (ITR)

• Refunds will get stuck

• Banking, mutual funds, share market, and other financial dealings will be affected

• Transactions requiring PAN will be blocked

How to link PAN and Aadhaar?

• Visit the Income Tax Department’s official website

• Select the ‘Link Aadhaar’ option

• Enter PAN and Aadhaar number and verify using OTP

• You will receive a confirmation message after successful linking

The government has made it clear that PAN–Aadhaar linking is mandatory, not optional. Taxpayers are advised not to wait until the last date and complete the process as early as possible. If PAN becomes inactive after 31 December 2025, your financial activities may face serious disruption.