The CBDT has made it compulsory that every holder of a PAN must link their PAN with Aadhaar by 31st December 2025, or the PAN card will be rendered inoperative from 1st January 2026, as per the latest notification of the CBDT (No. 26/2025) dated April.

A PAN card is compulsory for most of the financial and legal processes that take place in India, such as filing ITR, opening bank or demat accounts, and entering into large-value transactions. If deactivated, people will not be able to operate bank accounts, invest in the share market, avail themselves of loans, and use welfare programs offered by the government. Besides this, one shall also not be able to perform property, foreign currency transactions, and businesses beyond ₹ 50,000 without an operational PAN.

To prevent such inconveniences, taxpayers can easily connect their PAN and Aadhaar with the Income Tax e-filing portal. This is done by typing in PAN and Aadhaar details, confirming the details through OTP, and ensuring that the linkage is done. A message will be displayed that will indicate whether the two are already connected.

The CBDT, which operates under the Department of Revenue in the Ministry of Finance, identifies the policies and the administrative aspects of the direct tax laws of the Income Tax Department. By doing so, the government will be enhancing identity checking, curbing tax evasion, and also making sure that the taxpayers have one unified database.

They encourage citizens to follow the linking process until the deadline to avoid punishment and not to have a gap between financial and legal services associated with their PAN. Non-compliance will make the PAN null at the beginning of the new year, 2026.

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