PAN Card Deactivation Risk in 2026 If Not Linked With Aadhaar: How to Link & Check Status

The Income Tax Department has issued a firm warning for taxpayers whose Permanent Account Number (PAN) is not yet linked with their Aadhaar number. According to the latest directive, the final deadline to complete this mandatory linkage is December 31, 2025. From January 1, 2026, any PAN that remains unlinked will be marked inoperative, leading to significant financial consequences for individuals. With the deadline fast approaching, taxpayers are urged to act promptly to avoid penalties, frozen refunds, and higher tax deductions.

What Is the PAN-Aadhaar Linking Rule?

The Central Board of Direct Taxes (CBDT) has mandated that all PAN cards must be linked with Aadhaar. This requirement was introduced to streamline taxpayer identification and curb fraud. A recent notification — Notification No. 26/2025, issued on April 3, 2025 — reaffirmed the deadline and added urgency to the compliance process. Taxpayers whose PAN was issued using an Aadhaar Enrolment ID before October 1, 2024 must ensure their permanent Aadhaar number is linked before year-end.

What Happens If You Don’t Link by the Deadline?

If a PAN remains unlinked with Aadhaar after December 31, 2025, the Income Tax Department will declare it inoperative from January 1, 2026. An inoperative PAN can disrupt financial and tax-related processes, impacting returns, investments, and banking activities.

Consequences of an Inoperative PAN

Once a PAN is marked inoperative:

• Income tax refunds may be frozen or withheld.

• Tax Deducted at Source (TDS) may be applied at higher rates.

• Financial transactions may require additional verification.
  These steps are aimed at enforcing compliance but can cause inconvenience if not completed on time.

Who Must Link Their PAN and Aadhaar?

The requirement applies to:

• Individuals whose PAN was issued using an Aadhaar Enrolment ID before October 1, 2024.

• Taxpayers who have not yet completed the PAN-Aadhaar linkage.
  Even if you have filed returns in the past, you should verify your linking status to avoid issues.

Before You Start: Required Documents

To link PAN with Aadhaar successfully, you will need:

• A valid PAN card

• A valid Aadhaar number

• A mobile number registered with Aadhaar to receive OTP

• A fee payment receipt if a penalty applies (₹1,000 for PAN issued before July 1, 2017)

Step-by-Step Linking Process

Step 1: Pay the Mandatory Fee (If Applicable)

Taxpayers whose PAN cards were allotted before July 1, 2017 must first pay a ₹1,000 penalty fee if not already paid. The fee is collected through the Income Tax e-Filing Portal.

Step 2: Visit the e-Filing Portal

1. Go to the Income Tax e-Filing Portal homepage.

2. Under Quick Links, click Link Aadhaar.

3. Enter your PAN and Aadhaar number, then click Continue to Pay.

Step 3: Verify With OTP

4. Enter your PAN again for confirmation and provide your mobile number.

5. You will receive an OTP on your registered phone — enter it.

6. Select Income Tax and click Proceed.

7. Choose the Assessment Year (e.g., 2026-27) and select Other Receipts (500).

8. Complete the ₹1,000 payment through Net Banking / Debit Card / UPI.

How to Check PAN-Aadhaar Linking Status

After filing, taxpayers can check their PAN-Aadhaar linking status on the Income Tax portal using their PAN and Aadhaar number. The status will show whether it is linked, pending, or still due. It is advisable to confirm the status well before the deadline.

Conclusion

With just weeks left until December 31, 2025, linking your PAN with Aadhaar should be a high priority if you have not already done so. The consequences of failing to do so — including an inoperative PAN and financial disruption — make it essential for all taxpayers to act promptly. Using the e-Filing portal’s simple online steps, you can ensure your tax identity remains valid and compliant with the government’s regulations. Don’t wait until 2026 — link your PAN and Aadhaar today.