Aadhaar–PAN linking deadline: What happens if you miss December 31 and how to link them step by step

As the year comes to a close, many people in India are rushing to complete financial tasks before the deadline. One important task is linking your Aadhaar card with your Permanent Account Number (PAN). The government has set December 31, 2025, as the last date for this process. Citizens who obtained their PAN using an Aadhaar Enrolment ID before October 1, 2024, must pay particular attention, as missing the deadline can lead to serious consequences.

Linking PAN with Aadhaar is essential for filing Income Tax Returns (ITR). If your PAN and Aadhaar are not linked, you may face multiple problems during tax filing and other financial transactions.

Why linking PAN with Aadhaar is important

The government requires PAN and Aadhaar to be linked for tax compliance. If you miss the deadline, several issues can arise:

1. No refunds: Taxpayers will not receive any refunds due under the Income Tax Act. This includes both full and partial refunds.

2. No interest on refunds: Even if a refund is due later, no interest will be paid for the delayed period.

3. Difficulty in checking TDS/TCS: Form 26AS will not show TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) credits. Certificates for these taxes will also be unavailable.

4. Higher tax deductions: If you are supposed to pay taxes at source, they may be deducted at a higher rate due to the non-linking of PAN and Aadhaar.

Besides these tax-related issues, missing the deadline also affects certain financial transactions:

• Opening a bank account will not be allowed.

• You cannot get a new debit or credit card.

• Buying mutual fund units will be restricted.

• Cash deposits exceeding Rs 50,000 in a single day at a bank or post office will not be allowed.

• Purchasing a bank draft or pay order in cash exceeding Rs 50,000 in a day will be blocked.

• Any other bank transaction exceeding Rs 10,000 will also not be permitted.

These rules highlight the importance of linking PAN and Aadhaar before December 31, 2025, to avoid penalties and restrictions on financial activities.

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How to link Aadhaar with PAN

The process of linking Aadhaar with PAN is simple and can be done online. Here are the steps:

1. Visit the official portal: Go to the ‘Link Aadhaar’ section on the Income Tax Department’s website.

2. Enter details: Fill in your PAN and Aadhaar numbers accurately. Validate them before proceeding.

3. Verify message: Ensure that the message “Your payment details are verified” appears on the screen.

4. Provide name and mobile number: Enter your name exactly as it appears on your Aadhaar and your registered mobile number.

5. Confirm Aadhaar details: Specify if your Aadhaar mentions only the year of birth or the full date of birth.

6. Enter OTP: A six-digit OTP will be sent to your registered mobile number. Enter this OTP to complete the linking process.

Once the process is completed successfully, you will receive a confirmation message. It is important to keep a record of this confirmation for future reference, especially during ITR filing or any financial transactions.

Linking your Aadhaar and PAN ensures smooth tax filing, prevents higher tax deductions, and avoids problems with banking and financial services. It also helps the government maintain accurate records of taxpayers and reduces fraud and tax evasion.

In conclusion, the PAN-Aadhaar linking deadline is a key step for all citizens to ensure compliance with tax laws and secure access to banking and financial services. Completing the process before December 31, 2025, will save you from unnecessary complications and make tax filing and other transactions much easier.