Aadhaar–PAN linking deadline on December 31: Rs 1,000 penalty; what you must do now

Aadhaar PAN linking

If you hold a PAN card, the clock is officially ticking. The Income Tax Department has reiterated that linking Aadhaar with PAN is mandatory, with December 31, 2025 marked as the final cut-off date. PAN cards that remain unlinked after this deadline will be rendered inoperative, which can have serious financial and compliance consequences.

The government has already provided multiple extensions in the past, and this time the messaging is clear. This is the last opportunity for PAN holders to complete the Aadhaar–PAN linking process without losing access to essential tax-related services.

Who needs to link Aadhaar with PAN

All PAN holders are required to link their PAN with Aadhaar unless specifically exempted under existing rules. If you have not yet completed the linking, you must first pay a late fee of Rs. 1,000 before submitting the request.

There is, however, one important exception. Individuals who obtained their PAN after October 1, 2024 using an Aadhaar enrolment ID are allowed to link Aadhaar with PAN free of cost until December 31, 2025. For everyone else, the penalty applies.

Once the deadline passes, an unlinked PAN will become inoperative, meaning it will no longer be valid for financial or tax transactions.

How to link PAN with Aadhaar

The linking process is entirely online and can be completed through the official income tax portal.

First, visit the official income tax e-filing website. On the homepage, locate the Quick Links section and select the option to link Aadhaar.

Next, enter your PAN number and Aadhaar number and submit them for validation. If your PAN is already linked, the system will clearly display a confirmation message.

If your PAN is not linked, and you have already paid the Rs. 1,000 penalty through the authorised payment portal, the system will automatically verify the payment details. Once verification is successful, you can proceed with the linking request.

After submitting the required details, you will receive a six-digit OTP on your Aadhaar-registered mobile number. Enter the OTP to confirm and submit your Aadhaar–PAN linking request.

The linking process usually takes four to five working days to be completed and reflected in the system.

What happens if you do not link Aadhaar with PAN

If your PAN becomes inoperative after December 31, 2025, the impact goes beyond inconvenience.

Any income tax refund due to you will not be issued until your PAN becomes operative again. Even after the refund is released, no interest will be paid for the period during which the PAN remained inactive.

If tax is deducted at source on your income, it will be deducted at a higher rate under applicable provisions. Similarly, if tax is collected at source, it will also be charged at a higher rate.

In practical terms, an inoperative PAN can disrupt salary payments, bank transactions, investments, property deals and routine tax filings.

Why this deadline matters

PAN and Aadhaar linkage is part of the government’s broader effort to curb tax evasion and duplicate identities. With multiple extensions already granted, the December 31, 2025 deadline is being positioned as final.

If you rely on PAN for financial activities, delaying this process is a risk not worth taking. Completing the linking now avoids penalties, prevents service disruption and ensures uninterrupted access to refunds and lower tax deductions.