The Central Board of Direct Taxes (CBDT) has once again reminded taxpayers to link their PAN (Permanent Account Number) with Aadhaar before December 31, 2025, warning that non-compliance will result in PAN deactivation starting January 1, 2026. The directive, issued through CBDT Notification No. 26/2025, aims to streamline tax processes and curb fraudulent financial activities.
According to the Ministry of Finance, all individuals holding a PAN card must ensure it is linked with their Aadhaar to maintain its validity. The move is part of the government’s ongoing efforts to establish a unified identification framework for financial and tax-related transactions.
What Happens If Your PAN Is Deactivated
Failure to link PAN and Aadhaar before the deadline can lead to significant disruptions in daily financial activities. A deactivated PAN will make it impossible to:
- Open bank or demat accounts or make deposits above ₹50,000.
- Invest in the stock market or start SIP schemes.
- Apply for government financial schemes or welfare benefits.
- Take loans or credit from banks and other financial institutions.
- Buy or sell property or vehicles.
- Conduct foreign currency transactions above ₹50,000.
Since PAN is also mandatory for business operations, its deactivation could impact entrepreneurs and traders as well.
How to Link PAN with Aadhaar
The process to link PAN and Aadhaar is simple and can be completed online:
- Visit the Income Tax e-filing portal at https://www.incometax.gov.in/iec/foportal.
- Click on the ‘Link Aadhaar’ option on the left-hand panel.
- Enter your PAN and Aadhaar numbers, then click ‘Validate’.
- If not already linked, an OTP will be sent to your registered mobile number for verification.
- Once verified, your PAN and Aadhaar will be successfully linked.
Why Linking Is Mandatory
The CBDT clarified that the linking process is essential for maintaining transparency in financial transactions and preventing tax evasion. The integration helps authorities track financial activities, ensure accurate tax filings, and avoid duplication or misuse of PAN cards.
About CBDT
The Central Board of Direct Taxes (CBDT) operates under the Department of Revenue, Ministry of Finance, and is responsible for formulating policies related to direct taxes and supervising the Income Tax Department. While the CBDT frames the policies, the Income Tax Department ensures their effective implementation.
With the December 31 deadline approaching, taxpayers are urged to complete the linking process immediately to avoid penalties and complications in the new financial year.
