Last chance to link PAN with Aadhaar before December 31 or face penalties: Here’s how to do it

Updated on 26-Dec-2025
HIGHLIGHTS

PAN–Aadhaar linking is mandatory, with a Rs 1,000 penalty for delayed compliance in most cases.

The entire linking process is online via the Income Tax e-filing portal and takes a few minutes to complete.

An inoperative PAN can block income tax filing, KYC verification and routine financial transactions.

If you are an Indian citizen, you must know that the Income Tax Department has issued a fresh reminder to PAN card holders, asking them to complete their Aadhar PAN linking process. To do this, the authority has set a deadline, that is December 31. As the financial rules are getting stricter and the reliance on digital verification grows, the authorities have warned that not linking PAN and Aadhaar could lead to major problems for taxpayers.

The taxpayers who ignore the requirement risk having their PAN rendered inactive, which can impact everything from filing income returns to carrying out financial transactions. So, if you have not linked your Aadhar with PAN, here is everything that you should know.

Why PAN–Aadhaar linking matters

The linking of PAN and Aadhaar has been mandatory for several years, but a small number of taxpayers have yet to complete the process. According to the latest guidelines, PAN holders who fail to link Aadhaar will be required to pay a Rs 1,000 late fee before proceeding with the linkage. However, there is an exception: individuals who received a PAN after October 1, 2024 and used an Aadhaar enrolment ID can complete the linking process for free until December 31, 2025.

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The linking process is fully online. Taxpayers need to visit the official Income Tax e-filing portal at incometax.gov.in and select the “Link Aadhaar” option under Quick Links.

After entering PAN and Aadhaar details, users can verify their status. If the penalty has already been paid via the NSDL portal, the system will validate the payment automatically.

An OTP sent to the registered mobile number completes the verification. The update usually reflects within four to five working days.

What happens if you miss the deadline

If PAN is not linked with Aadhaar by December 31, 2025, it will become inoperative. This can block income tax return filing, KYC verification and access to several financial services that require a valid PAN.

Ashish Singh

Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek.

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