Missed December 31st PAN-Aadhaar deadline? Here's what happens from January 1, 2026: Key FAQs every taxpayer must know

. PAN and Aadhaar are mandatory for applying for passports, opening bank accounts and availing subsidies.

• PAN becomes inoperative from Jan 1 if not linked with Aadhaar by Dec 31 deadline
• Inoperative PAN blocks tax filing, banking, and key government services
• PAN can be reactivated after linking Aadhaar and paying a Rs 1,000 penalty fee

Did our AI summary help?

Taxpayers who did not link their Aadhaar with PAN by the December 31 deadline now face their PAN becoming inoperative from January 1. This means the PAN cannot be used for most financial, tax and government-related transactions unless it is reactivated immediately.

The good news is that the PAN can still be restored-but only after completing the linking process and paying the prescribed fee.

What happens if PAN becomes inoperative?

An inoperative PAN is effectively unusable. Individuals will be unable to file income tax returns, open new bank or demat accounts, or receive tax refunds. High-value transactions, including large purchases, cash deposits and select banking services, will also be blocked.

Routine banking activities may also be affected. Applying for debit or credit cards, depositing cash at banks or post offices, or purchasing bank drafts and pay orders in cash may not be permitted. Cash transactions beyond specified limits could be declined.

In addition, access to key government services may be disrupted. PAN and Aadhaar are mandatory for applying for passports, opening bank accounts and availing subsidies. Replacing a lost or damaged PAN card can also become difficult, as Aadhaar details are compulsory for issuing a new PAN.

Can an inoperative PAN be reactivated?

Yes. Even after missing the deadline, PAN can be made operative again. However, reactivation is possible only after Aadhaar is linked and a penalty fee of ₹1,000 is paid.

Once the linking request is completed and the payment is successful, PAN is usually reactivated within a few days. Taxpayers should note that the fee continues to apply even after the deadline.

Is there a deadline for PAN reactivation?

There is no separate grace period announced for reactivation. Taxpayers are advised to complete the process immediately, as delays will prolong the period during which financial and official transactions remain blocked.

How to link PAN with Aadhaar after the deadline

To restore PAN validity, taxpayers must log in to the Income Tax Department's e-filing portal using their registered credentials.

After logging in, go to the 'My Profile' section and select 'Link Aadhaar' under personal details. Enter the PAN and Aadhaar numbers as prompted.

If the penalty is applicable, proceed to the e-Pay Tax option. Under 'Other Receipts', the payable amount of Rs 1,000 will be shown automatically. Complete the payment through the bank portal and submit the linking request.

Why immediate action is critical

Until the PAN is reactivated, taxpayers may face repeated transaction failures, compliance issues and service disruptions. Linking PAN with Aadhaar not only restores usability but also helps prevent identity duplication and misuse.

Taxpayers who missed the December 31 deadline are strongly advised to complete the linking process at the earliest to avoid prolonged inconvenience.