PAN to Be Declared Inoperative After 31 December 2025 — Know the Impact and Steps to Complete the Linking
If you’ve been putting off your PAN–Aadhaar linking thinking you’ll handle it “sometime soon,” that moment has officially arrived. The deadline is fast approaching, and 31 December 2025 is the final date to link your Permanent Account Number (PAN) with Aadhaar. Missing this cut-off will make your PAN inoperative, which can severely impact essential tax activities — from filing your ITR to receiving refunds.
For millions of taxpayers, PAN is far more than just a plastic card or an alphanumeric code. It serves as the primary identifier for every financial interaction with the Income Tax Department. Whether it involves monitoring advance tax, reconciling TDS/TCS, processing income tax returns, or clearing refunds — PAN is central to the entire compliance ecosystem. Linking Aadhaar with PAN enables the government to prevent duplicate PANs, reduce tax evasion, and ensure accurate matching of financial records.
Who Needs to Link PAN with Aadhaar? — CBDT Guidelines
The Central Board of Direct Taxes (CBDT) has clearly stated:
Any individual who has been allotted both PAN and Aadhaar on or before 1 October 2025 must link the two by 31 December 2025.
Failure to do so will make the PAN inoperative from 1 January 2026.
Consequences of an Inoperative PAN
An inoperative PAN is not cancelled, but in practice, it functions as if you don’t have a PAN at all. This leads to several disruptions in routine tax and financial operations:
❌ 1. Cannot file Income Tax Returns
The e-filing portal will not permit filing of ITRs using an inoperative PAN.
❌ 2. Refunds will be withheld
Any refund due will remain pending until the PAN is reactivated.
❌ 3. Pending return proceedings will be impacted
Processes such as defective returns (u/s 139(9)), updated returns (u/s 139(8A)), and assessments requiring PAN authentication will not progress.
❌ 4. Higher TDS/TCS rates
You will be considered a taxpayer “without PAN” under Sections 206AA and 206CC, resulting in deduction/collection of tax at higher rates.
❌ 5. Problems in high-value transactions
Banks, mutual funds, and other financial institutions may reject or hold transactions where PAN verification is mandatory.
In essence, allowing your PAN to become inoperative can lead to compliance setbacks, financial delays, and unnecessary complications.
Step 1: Visit the Income Tax e-Filing Website
Open the official portal: www.incometax.gov.in
On the homepage, look for the Quick Links section.
Step 2: Select ‘Link Aadhaar’
Clicking this option will open a form where you must provide:
-
Your 10-digit PAN
-
Your 12-digit Aadhaar number
-
Name exactly as it appears on Aadhaar
Tick the declaration confirming that the details are correct, then press Validate.
Step 3: Pay the Linking Fee (If Applicable)
A late fee of ₹1,000 is required if the linking is done after the previous deadline.
If your payment is not already registered, the system will show:
“Payment details not found.”
Click Continue to Pay Through e-Pay Tax, and complete the payment using the following path:
Payment Procedure
-
Enter your PAN and mobile number, then verify via OTP.
-
On the e-Pay Tax dashboard, choose:
-
Assessment Year: 2025–26
-
Type of Payment: Other Receipts (500)
-
Sub-type: Fee for delay in linking PAN with Aadhaar
-
-
The portal will automatically fill the amount as ₹1,000.
-
Select your payment method and finish the transaction.
A Challan will be generated — keep this for future reference.
Step 4: Complete the Aadhaar–PAN Linking Request
Return to the Link Aadhaar page and:
-
Enter PAN, Aadhaar, and Name again
-
Submit the OTP sent to your Aadhaar-linked mobile number
-
Click Validate
Your linking request will now be submitted.
How to Check Your Aadhaar–PAN Linking Status
You can verify the status in a few seconds:
-
Visit www.incometax.gov.in
-
Under Quick Links, click Link Aadhaar Status
-
Enter your PAN and Aadhaar
-
Select View Link Aadhaar Status
You will see one of the following responses:
✔ Linked
“Your PAN is already linked with Aadhaar.”
❌ Not Linked
You will be asked to complete the linking process.
⏳ Pending Verification
Your request has been forwarded to UIDAI for confirmation.
With 31 December 2025 being the final deadline, taxpayers are strongly advised to finish the Aadhaar–PAN linking process at the earliest.
An inoperative PAN can lead to a cascade of compliance problems — including stalled refunds, higher TDS rates, and delays in processing income-tax matters.
The entire procedure requires only a few minutes and ensures seamless tax compliance going forward.