New Delhi: The Central government has reiterated that linking PAN with Aadhaar is mandatory for carrying out financial transactions and availing government welfare schemes. The Central Board of Direct Taxes (CBDT) has warned that PAN cards not linked with Aadhaar within the prescribed deadline may be deactivated from January 1, 2026, potentially causing significant financial inconvenience to taxpayers.
Individuals who obtained PAN cards using Aadhaar Enrolment ID before October 1, 2024, have been given a final deadline till the end of this month to complete the linkage. For all other PAN holders, the deadline expired in June 2023. PAN cards that remain unlinked have already become inoperative; however, such PANs can be reactivated by linking Aadhaar after paying a penalty of Rs 1,000.
If PAN–Aadhaar linking is not completed, taxpayers will be unable to file Income Tax Returns (ITR), receive pending tax refunds, or process earlier returns. In addition, higher Tax Deducted at Source (TDS) may be levied on bank transactions, mutual fund investments and other financial activities. Transactions exceeding Rs 50,000 may also become difficult, while opening Demat accounts, completing KYC, and availing loans could be affected.
The Income Tax Department has advised taxpayers to complete the PAN–Aadhaar linking process through the official e-filing portal, [www.incometax.gov.in](http://www.incometax.gov.in). Citizens can also verify their PAN–Aadhaar linking status online through the same portal.
Authorities have urged taxpayers not to delay the process, warning that failure to link PAN with Aadhaar within the stipulated time may disrupt essential financial and investment-related activities.