- By Deeksha Gour
- Tue, 04 Nov 2025 07:12 PM (IST)
- Source:JND
PAN-Aadhaar Linking: The Central Board of Direct Taxes (CBDT) has made it mandatory for all Permanent Account Number (PAN) holders to link their PAN with their Aadhaar number before January 1, 2026 deadline. Those failing to do so risk having their PAN deactivated, which could disrupt several financial and legal transactions.
PAN is one of the most essential identification numbers for Indian citizens, used for filing Income Tax Returns, opening bank accounts and conducting major financial transactions. However, individuals who do not link their PAN with Aadhaar within the CBDT-stipulated time frame may face restrictions in availing these services.
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Consequences Of PAN Deactivation
If a PAN card becomes inactive, it will not be accepted for any official or financial purposes. Individuals will be unable to open bank or demat accounts or make cash and fixed deposits above Rs 50,000.
Without an active PAN, opening a demat account or investing in the stock market, mutual funds, or SIPs will not be possible. Similarly, applicants will be barred from accessing government welfare schemes linked to financial benefits.
A deactivated PAN will also affect an individual’s ability to apply for personal, home, or business loans from banks and other financial institutions. Property and vehicle transactions will be restricted, as PAN is required for both buying and selling.
Foreign currency transactions exceeding Rs 50,000 will also be prohibited without an active PAN. Furthermore, for business owners, an inactive PAN will disrupt compliance, as PAN is mandatory for business operations, taxation and GST filings.
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How To Link PAN With Aadhaar
The government has simplified the process of linking PAN with Aadhaar through the Income Tax e-filing portal.
- Visit the official Income Tax website – https://www.incometax.gov.in/iec/foportal
- Click on the ‘Link Aadhaar’ option available on the homepage.
- Enter your PAN and Aadhaar numbers, then click on ‘Validate’.
- If already linked, a message confirming the same will appear. If not, you’ll be asked to enter your registered mobile number to receive an OTP.
- Submit the OTP to complete the linking process.
The Ministry of Finance issued this directive through CBDT Notification No. 26/2025 in April, urging taxpayers to comply before the deadline to avoid complications.