The government has been talking about PAN–Aadhaar linking for years but this time, it’s different. There’s a final deadline to clean up the system, eliminate fake or duplicate PANs, and strengthen taxpayer identification across databases.
But why is this happening now?
PAN–Aadhaar linking has actually been around for a while. It was first made mandatory on July 1, 2017, to create a single, verifiable identity for taxpayers and curb cases of duplicate or fake PANs.
While lakhs of people linked their PANs with Aadhaar, many still didn’t and some even managed to obtain multiple PANs using temporary Aadhaar Enrolment IDs (AEIDs).
Originally, the AEID – a 28-digit temporary number you receive after enrolling for Aadhaar, was introduced to speed up PAN issuance. It allowed individuals to get a PAN even before their Aadhaar number was generated. But over time, this flexibility also led to data mismatches, duplication, and misuse.
To fix this, the government tightened the rules:
- Since October 1, 2024, quoting an AEID is no longer accepted for new PAN applications or ITR filing.
- And from January 1, 2026, any PAN that isn’t linked to a valid Aadhaar will be deactivated.
Who needs to link by Dec 31, 2025?
You must link your PAN and Aadhaar if:
- You were allotted a PAN on or before July 1, 2017, and haven’t linked it yet.
- You received your PAN using an Aadhaar Enrolment ID before October 1, 2024.
You can complete the linking on the e-filing portal by selecting ‘Link Aadhaar’ under the Quick Links section on the homepage.
You can also check your PAN–Aadhaar linking status on the same page by clicking ‘Link Aadhaar Status.’
Who doesn’t need to link PAN with Aadhaar?
Not everyone needs to worry about linking. The government has exempted a few categories:
- Non-Resident Indians (NRIs)
- Senior citizens aged 80 or above
- Individuals who are not citizens of India.
- People living in Assam, Meghalaya, or Jammu & Kashmir
So if you fall into any of these, no action needed.
What happens if your PAN becomes inoperative?
If you don’t link your PAN with Aadhaar, it will become inoperative from January 1, 2026 and here’s what it means:
1. No tax refunds: Even if you’ve filed your ITR, any pending tax refunds won’t be processed until your PAN is reactivated.
2. Higher TDS/TCS: You’ll face higher rates of tax deduction or collection, up to 20% in some cases.
3. ITR restrictions: You won’t be able to file or verify your income tax return.
4. Limited access to banking and investments: Banks and financial institutions will treat your PAN as invalid. This can block opening new accounts, large deposits or withdrawals of ₹50,000 or more, and new investments in mutual funds, shares, and other securities.
If you’ve got any questions, drop ’em below!