Will your PAN get deactivated if not linked with Aadhaar?
What's the story
The deadline for linking Permanent Account Number (PAN) with Aadhaar is fast approaching. The last date to complete this process is December 31, 2025. After this date, any unlinked PAN will become inoperative from January 1, 2026. This means that individuals who fail to link their Aadhaar with their PAN by the deadline will have their unlinked PAN rendered inactive.
Linking requirements
Who needs to link PAN with Aadhaar?
As per the latest notification from the Income Tax Department, individuals who were allotted a PAN using an Aadhaar number on or before October 1, 2024, must complete the linking by December 31, 2025. For others, the deadline was May 31, 2024. Not linking within these timelines will result in an inactive PAN and several associated complications.
Impact on individuals
Consequences of an inactive PAN
An inactive PAN can create a host of problems for individuals. These include difficulties in filing Income Tax Returns (ITRs), higher TDS/TCS, and inability to open bank accounts or conduct transactions above certain limits. Even mutual funds and stockbrokers may suspend services due to KYC restrictions associated with an inactive PAN.
Online process
How to link PAN with Aadhaar online?
To link your PAN with Aadhaar, visit the Income Tax e-filing portal. Under 'Quick Links,' select 'Link Aadhaar.' Enter your Aadhaar number, PAN, and name as per Aadhaar and click 'Validate.' If you haven't paid the fee yet, you'll have to pay a penalty of ₹1,000. An OTP will be sent to your Aadhaar-linked mobile number for verification. After payment verification, return to the e-filing portal after a few days and repeat the process for successful linking.