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The deadline for Aadhaar-PAN linking is approaching: ₹1,000 penalty and important information you shouldn't overlook before December 31

The deadline for Aadhaar-PAN linking is approaching: ₹1,000 penalty and important information you shouldn't overlook before December 31

Deadline for connecting Aadhaar and PAN: According to CBDT's statement, the deadline for connecting Aadhaar and PAN is December 31, 2025. Taxpayers will probably suffer dire repercussions if they disregard the mandate. Everything you need to know about the deadline, from important information to fines. 

Aadhaar-PAN connection: In order to avoid any issues when filing their returns, the Income Tax (I-T) Department of India has required taxpayers to link their Aadhaar number with their Permanent Account Number (PAN). The official notification states that the deadline for connecting Aadhaar and PAN is December 31, 2025.

Taxpayers who wish to link their PAN and Aadhaar should be aware that doing so entails linking a person's PAN and 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 inoperational, 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, under Section 234H of the Income-tax Act, 1961, PAN holders who missed their earlier deadline may still be subject to a ₹1,000 late fine.

What happens if you don't connect PAN and Aadhaar?
A person will be subject to the following repercussions if they do not link their PAN and Aadhaar:

As of January 1, 2026, PAN will no longer be operating.
Increased TDS/TCS deductions under I-T Act Sections 206AA and 206 CC.
The submission of Form 15G/15H, which is required for the non-deduction of TDS, may also cause disruptions for taxpayers.

Due to invalid Know Your Customer (KYC), banks, mutual funds, and stockbrokers are likely to cease their services for investors.

Due to an inactive PAN, taxpayers' refunds will not be processed, and as a result, they will not get payment for their filed returns.

Important documents to connect PAN and Aadhaar
Permanent Account Number (PAN) that is valid
The person's Aadhaar card number
A functional mobile phone number
How can PAN and Aadhaar be linked?
Please take the actions listed below to link your PAN and Aadhaar numbers.

Step 1: Go to the official Income Tax website.

This is the direct link: https://www.incometax.gov.in/iec/foportal/

Step 2: In the "Quick Links" area, choose the "Link Aadhaar" option.

Step 3: Enter your name (as on your Aadhaar card), PAN, and Aadhaar number.

Step 4: Select "Validate."

Step 5: On the page, enter the One-time Password (OTP) that was issued to the mobile number you registered with Aadhaar.

Step 6: Once all the information has been entered, submit the form.

A confirmation notice will appear on your screen, and during the next three to five business days, the status updates will begin to appear on the portal.

People should be aware that they will be required to pay a ₹1,000 punishment if they link their PAN and Aadhaar after the deadline has passed. Therefore, before submitting, you must choose the "₹500 Fee for delay in linking PAN with Aadhaar."

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