Missing Dec 31 PAN-Aadhaar liking deadline will have severe consequences:You cannot open bank account, file ITR or buy MFs and stocks – learn more

Linking Permanent Account Number (PAN) with Aadhaar card is necessary for a select group of people in India otherwise their PAN would become inoperative after 31 December 2025. For whom is this deadline applicable? This deadline is binding only on those individuals who had were allotted PAN card on the basis of Aadhaar applications filed before 1 October 2024. This last date is only applicable for those who were allotted PAN or had obtained the identification document on the basis of Aadhaar Enrollmet ID before 1 October. What will happen if such individuaks don’t link Aadhaar with PAN? Without an active PAN, the individual may not be able to file Income Tax Return (ITR.) The citizen may not get any tax refund if his PAN is inoperative. According to the provisions of the Income Tax Act 2025, higher TDS and TCS might be levied on him in case of inoperative PAN. Eg, if an individual has a fixed deposit with a bank. After a certain interest threshold, TDS is levied at the rate of 10% with PAN and 20% without the furnishing of the identification department. According to the GoI’s PSU, ‘Protean eGov Technologies’ the following transactions cannot be initiative with an inactive PAN: (i) Purchase of mutual funds units worth above ₹50,000 (ii) One time cash deposits of equivalent amounts (iii) Cash payments over at hotels, restaurants for foreign travels (iv) Payments to RBI for bonds (v) Opening of FDs (vi) Life insurance premium payments How much penalty is levied for PAN-Aadhaar linkage? Currently, ₹1,000 penalty is levied for linking the two imperative documents. Deadline of PAN-Aadhaar linking: The deadline of linking the two imperative identification docs is 31 December 2025 in case of those citizens who had obtained PAN before 1 October 2024, on the basis of Aadhaar enrolment ID. But most of the others, the last date had already passed on 30 June 2023. For whom is Aadhaar-PAN linkage not compulsory? (Exemptions) According to the Income Tax Department, Aadhaar-PAN linkage requirement does not apply to any individual who is: The I-Tax Department is the sole authority responsible for issuing PAN in India. The department operates under the supervision of the Central Board of Direct Taxes (CBDT). For the application and processing of PAN cards, the department has authorised two key agencies: