What Happens If You Don’t Link PAN with Aadhaar by January 1, 2026
Linking of your PAN and Aadhar card is compulsory as your PAN can become inoperative if you fail to meet the last date, December 31, 2025.
Taxbuddy has mentioned it on Twitter (formerly X) – Your PAN card will be deactivated from Jan 2026.No ITR filing. No refunds. Even your salary credit or SIP could fail,”.
The government has granted repeated extensions for PAN-Aadhar linkage; however, the revised deadline is still awaited.
What can be the impacts if you fail to meet the December 31, 2025, last date for PAN-Aadhar linking? Can your salary be stopped? Won’t you be able to make your investments or redeem them? Will your bank accounts be blocked? It has been answered by a Partner of Dhruv Advisors, Deepesh Chheda. Giving answers to these questions-
Is PAN-Aadhar Linking mandatory for Everyone?
According to a notification issued by the Ministry of Finance on April 3, 2025, the Central Government has mandated that every individual who had been allotted a Permanent Account Number based on the Enrolment ID of the Aadhar application form submitted before to 1st day of October 2024 must intimate their Aadhar Number to the Principal Director of Income Tax (System ) or the Director of Income -Tax (System ) or to any person authorised by these authorities on or before the 31st day of December,2025, or such date as may be specified by the Central Board of Direct Taxes in this regard.
Do PAN Holders with Aadhar Enrolment ID Need to Link Again?
Yes, this is the group specifically required to link by December 31, 2025. Even though the PAN was generated using an Aadhar enrolment ID, the linking process must be completed once the Aadhar number is issued. The Income Tax-filing portal provides a simple online facility for such users to link their Aadhaar with their PAN seamlessly.
If PAN is not linked with Aadhaar before the due date? Can you file your Income Tax Return (ITR)?
Failure to link PAN with Aadhaar by the due date makes the PAN inoperative from the next day. This means you won’t be able to file or verify your Income Tax Return, refunds will be stopped, and pending returns won’t be processed. You may also face issues such as missing TDS/TCS credits in Form 26AS or higher tax deductions/collections. Once you complete the linking, your PAN becomes active again—generally within 30 days.
Financial Implications of an Inoperative PAN – Can Investments Be Made?
Even if your existing bank accounts or investments continue to function normally, an inactive PAN can prevent you from initiating new financial transactions, such as investing in mutual funds, trading in shares, or updating KYC information. Higher tax rates may apply to certain deductions, and you won’t be able to file or process your Income Tax Return. Essentially, your current holdings remain safe, but your ability to engage in future financial or tax-related activities is paused until the PAN is restored.
Eligibility for Linking Aadhar and PAN on Income Tax Portal
It is availble to individual taxpayers(both registered and unregistered on the e-filing Portal according to the Income Tax Department.
How to Link Your PAN with Aadhaar:
Linking your PAN with Aadhaar is simple and can be done online:
- Go to the Income Tax e-Filing portal.
- Click on “Link Aadhaar”.
- Enter your PAN, Aadhaar number, and mobile number, then verify with OTP.
- If your PAN is inactive, pay Rs. 1,000 first.
- Check the linking status anytime under Quick Links → Link Aadhaar Status.
Key Points to Consider
- Ensure that your name, date of birth, and mobile number match exactly on both PAN and Aadhaar.
- Certain individuals, such as NRIs, senior citizens above 80 years, and residents of specific states, may be exempt, but always verify before proceeding.
- Due to heavy traffic near the linking deadline, the Income Tax portal may slow down or crash, so it is advisable to complete the linking well in advance.
Conclusion
Linking your PAN with Aadhaar is critical to avoid financial and tax-related disruptions. Missing the deadline can affect ITR filing, refunds, TDS/TCS credits, and new investments. By ensuring your details match and completing the process ahead of time, you can safeguard your PAN from becoming inoperative and continue your financial activities seamlessly.
Author Bio
