The December 31, 2025 deadline to link your Aadhaar card with your PAN card is just around the corner, and missing it could have serious consequences for your financial life. If you haven’t already completed this crucial step, now is the time to understand the process and take action before your PAN becomes inoperative from January 1, 2026.
Why Linking Aadhaar with PAN Matters
The Central Board of Direct Taxes (CBDT) mandated the linkage between Aadhaar and PAN as a measure to strengthen tax compliance and prevent duplicate records in the system. This integration serves multiple purposes: it streamlines income tax return filing, enables seamless KYC verification for banking and investment activities, and reduces financial transaction bottlenecks.
More importantly, linking your Aadhaar with your PAN keeps your card active and operational. An inoperative PAN isn’t merely a bureaucratic status—it actively blocks you from filing tax returns, prevents refunds from being credited, and raises your TDS (Tax Deducted at Source) rates on various financial transactions. For anyone engaged in investments, trading, business ventures, or even receiving salaries, an inactive PAN creates significant operational friction.
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Current Deadline and Penalty Information
The most recent notification (No. 26/2025, issued April 3, 2025) specifically targets individuals whose PAN was issued using an Aadhaar Enrolment ID before October 1, 2024. These taxpayers must complete the linking process by December 31, 2025, without any additional penalty fee.
For anyone who missed earlier deadlines (June 30, 2023), linking now requires paying a mandatory penalty of ₹1,000 through the Income Tax e-filing portal. This is a one-time fee processed via the e-Pay facility, and it must be paid before submitting your linking request if your PAN was issued before July 1, 2017.
Step-by-Step Guide: Online Method (Fastest & Easiest)
The online method through the Income Tax e-filing portal is the quickest way to link your Aadhaar with your PAN. The portal offers two convenient approaches:
Method 1: Without Logging In (Quick Process)
Step 1: Navigate to the official Income Tax e-filing website (https://www.incometax.gov.in/iec/foportal/). On the homepage, locate the Quick Links section and click on “Link Aadhaar.”
Step 2: You’ll see a form requesting your PAN number and Aadhaar number. Enter both carefully—even a single digit error will cause the linking to fail. Additionally, enter your name exactly as it appears in your Aadhaar document.
Step 3: Click the “Validate” button. The system will cross-verify your details with UIDAI (Unique Identification Authority of India) database.
Step 4: Enter your mobile number (the one registered with your Aadhaar) and click the “Link Aadhaar” button. You’ll receive an OTP (One-Time Password) on this registered mobile number.
Step 5: Enter the OTP in the designated field and click “Validate” to confirm your identity. Once successful, your linking request is submitted to UIDAI for final processing. Vid3
Method 2: With Login (For Registered Users)
If you already have a registered account on the e-filing portal, you can log in using your user credentials and navigate to “My Profile” → “Link Aadhaar” for a streamlined experience.
Alternative Methods for Linking
Via SMS
If internet access is limited, you can link your Aadhaar with PAN through SMS. Open your phone’s messaging app and type: UIDPAN <12-digit Aadhaar> <10-digit PAN> and send it to either 567678 or 56161. You’ll receive an SMS confirmation once the linking is processed.
Offline Method
For those preferring in-person assistance, visit a PAN Service Centre operated by NSDL (Protean) or UTIITSL with your original Aadhaar and PAN cards, along with self-attested photocopies. Fill out the linking form and submit it. The process typically takes a few working days.
Addressing Common Issues: Mismatched Details
A frequent hurdle many face is mismatched information between their Aadhaar and PAN records. This includes variations in name spelling (for example, “Rajesh” vs “Rajesh Kumar”), discrepancies in date of birth, or different gender markers. Even a missing or extra middle name can trigger linking failure.
If you encounter such mismatches, you’ll need to correct the details in either your Aadhaar or PAN record before attempting to link again. Visit the UIDAI portal (uidai.gov.in) to update your Aadhaar information, or contact UTI ITS (utiitsl.com) to correct your PAN details. These corrections typically process within 3-7 working days, so plan accordingly if you have mismatches.
Checking Your Linking Status
After submitting your linking request, it’s wise to verify the status. Return to the Income Tax portal’s “Link Aadhaar Status” option under Quick Links, enter your PAN and Aadhaar numbers, and check whether the status shows “Linked,” “Pending,” or “Not Linked.” Processing usually takes between 4-30 days, though most requests complete within a week.
What Happens If You Miss the Deadline
If your PAN remains unlinked after December 31, 2025, it becomes inoperative from January 1, 2026. An inactive PAN blocks you from filing income tax returns, withholds any pending refunds, prevents opening new bank accounts or obtaining credit cards, and raises TDS rates on investments and salary income. Routine banking operations like SIP auto-debits and salary crediting may also face interruptions.
To reactivate an inoperative PAN, you must pay the ₹1,000 penalty via the e-filing portal and then complete the linking process. While linking typically completes within days after penalty payment, you should avoid initiating major financial transactions during this period.
Exempted Categories
Certain individuals are exempt from the PAN-Aadhaar linking mandate. These include Non-Resident Indians (NRIs), citizens aged 80 years and above, and residents of specific regions including Assam, Jammu and Kashmir, and Meghalaya. If you fall into these categories, you are not required to complete this process.
Final Takeaway
With less than nine days remaining in 2025, this is your final opportunity to link your Aadhaar with your PAN without disrupting your financial activities. The online process takes merely 10-15 minutes, and the cost is either zero (if you’ve obtained PAN using an Aadhaar Enrolment ID before October 1, 2024) or a one-time ₹1,000 penalty fee.
Don’t let bureaucratic delays prevent you from maintaining financial stability. Complete this essential task today through the official Income Tax portal and ensure your PAN remains active, functional, and operational throughout 2026 and beyond.