Aadhaar-PAN card link status: What happens if you miss the 31 December deadline; how to link online

The deadline to link your Aadhaar card with your Permanent Account Number (PAN) is 31 December 2025. You have just one day left to complete this crucial compliance requirement. The income tax department has repeatedly reminded PAN holders that failing to complete Aadhar-PAN linking within the stipulated timeline could lead to consequences.

Before linking PAN with Aadhaar, taxpayers are required to pay a penalty of ₹1,000 on the income tax e-filing portal, where applicable. This fee must be paid online before the linking request can be submitted.

However, PAN holders who obtained their cards on or after 1 October 2024 using their Aadhaar enrolment ID are exempt from paying the ₹1,000 fee. Such individuals are allowed to link their PAN with Aadhaar free of charge until 31 December 2025, according to ClearTax.

What will happen if you fail to link Aadhar and PAN?

If, for any reason, you fail to pay the applicable late fee and do not complete the linking process by 31 December, your PAN card will become inoperative. Once that happens, your PAN cannot be used for a wide range of financial and tax-related transactions, including filing income tax returns, opening new bank or demat accounts, making high-volume purchases, or receiving tax refunds.

A defaulter will also face trouble while issuing debit and credit cards, making a cash deposit with a bank or post office, or purchasing a bank draft or pay order in cash, all of which must be valued at less than ₹50,000 per day. Additionally, all bank transactions exceeding ₹10,000 will also not be allowed.

PAN and Aadhaar cards also need to be submitted to receive government services, such as applying for a passport, obtaining subsidies and opening a bank account. Therefore, it becomes difficult to access government services when PAN and Aadhaar cards are not linked.

When the PAN-Aadhaar is not linked, getting a new PAN card may also be difficult, especially during cases when the old one is either damaged or lost. It becomes an issue since it is mandatory to mention the Aadhaar card number while applying for a new PAN card, Mint reported earlier.

Steps to link your Aadhar with PAN

PAN-Aadhaar linking refers to the process of connecting a person's PAN with their Aadhaar number to verify identity and prevent the issuance of duplicate PANs. All taxpayers in India are required to ensure that their PAN-Aadhaar link remains active.

Here's how you can easily do it:

• Visit the income tax e-filing portal and log in with your valid credentials. Register if you haven't done so.
• Once you are logged into the website, go to ‘My Profile’ and then click on ‘Link Aadhaar’ under the ‘Personal Details’ option.
• Enter your PAN and Aadhaar number and select ‘continue to pay through e-pay tax’ and proceed.
• Choose the relevant assessment year and type of payment as ‘Other Receipts’.
• The applicable amount will be pre-filled against others. Once that is done, click continue.
• Now, a challan will be generated. Select the mode of payment and pay at the redirected bank website.
• Once the payment is done, the linking of PAN with Aadhaar can be done on the e-filing portal.

What to do if your PAN becomes inoperative?

If you miss the final deadline of 31 December and your PAN becomes inoperative, don't be scared because there's a way to make it operative again.

The PAN can be made operative again within 30 days of completing the required process. A fee of ₹1000 will continue to apply even after the deadline to make the PAN operative by intimating the Aadhaar number.

Once this process is completed, the PAN is made operative again, typically within a few days of submitting the request.