PAN–Aadhaar linking deadline ends soon: Step-by-step guide to complete the process

PAN card holders must link their Permanent Account Number (PAN) with Aadhaar before December 31, 2025. This step is very important, as the Income Tax Department may declare PAN cards that are not linked with Aadhaar as inoperative from January 1, 2026.

The government has made this rule mandatory to improve transparency and prevent misuse of PAN cards. According to Notification No. 26/2025, issued on April 3, 2025, people who received their PAN card using an Aadhaar Enrolment ID before October 1, 2024, must complete Aadhaar linking using their permanent Aadhaar number by the end of 2025.

The Central Board of Direct Taxes (CBDT) has also warned that failure to link PAN with Aadhaar will lead to financial consequences. These may include suspension of income tax refunds and deduction of tax at higher rates. From January 1, 2026, taxpayers with inoperative PAN cards may face serious difficulties in filing returns or carrying out financial transactions.

This linking process is simple and can be completed online. However, users must ensure they have the required documents and complete the steps carefully to avoid errors or delays.

What happens if PAN is not linked with Aadhaar

If PAN is not linked with Aadhaar by the deadline, the PAN card may become inoperative. This means it cannot be used for important financial activities. An inoperative PAN may cause problems in filing income tax returns, opening bank accounts, investing in mutual funds, or carrying out high-value transactions.

The CBDT has clarified that taxpayers who fail to comply may also face higher Tax Deducted at Source (TDS) rates. This means more tax may be deducted from income such as salary, interest, or professional fees. In addition, income tax refunds may be withheld until the PAN becomes operative again.

To complete the linking process, taxpayers must keep certain documents ready. These include a valid PAN card, a valid Aadhaar number, and a mobile phone number linked to Aadhaar for receiving one-time passwords (OTPs). Without a registered mobile number, the process cannot be completed.

In some cases, a fee of Rs 1,000 is applicable. This fee applies to PAN cards issued before July 1, 2017, that have not yet been linked with Aadhaar. The fee must be paid before submitting the Aadhaar linking request.

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How to pay the PAN-Aadhaar linking fee

Before starting the linking process, users must pay the mandatory fee through the Income Tax Department’s e-Filing portal. Follow these steps carefully:

1. Visit the official website of the Income Tax Department at incometax.gov.in.

2. On the homepage, find the Quick Links section.

3. Click on the Link Aadhaar option.

4. Enter your PAN and Aadhaar details.

5. Choose the option to pay the fee through e-Pay Tax.

6. Re-enter your PAN details.

7. Verify your mobile number using the OTP sent to your phone.

8. Select Income Tax as the payment type.

9. Choose the correct assessment year.

10. Under payment category, select Other Receipts (500).

The fee amount of Rs 1,000 is auto-filled by the system. You can pay using net banking, debit card, or UPI. Once payment is completed, it may take four to five working days for the payment status to be updated in the system.

Only after the payment status is verified can you proceed with the Aadhaar linking request.

How to link Aadhaar with PAN online

After successful payment, follow these steps to link your Aadhaar with PAN:

1. Go to the Link Aadhaar section on the e-Filing portal.

2. Enter your PAN number and Aadhaar number.

3. Validate the details entered.

4. Check that the message “Your payment details are verified” appears on the screen.

5. Enter your name exactly as mentioned on your Aadhaar card.

6. Enter your mobile number linked with Aadhaar.

7. Confirm Aadhaar validation.

8. Specify whether your Aadhaar mentions only the year of birth.

9. Enter the six-digit OTP sent to your registered mobile number.

Once the OTP is verified, the PAN-Aadhaar linking process will be completed successfully.

Tax experts advise taxpayers not to wait until the last moment. Technical issues or incorrect details can delay the process. Completing the linking early can help avoid penalties, refund delays, and higher tax deductions. PAN-Aadhaar linking is a one-time process, but it plays a key role in ensuring smooth financial and tax-related activities in the future.