Aadhaar-PAN Card Linking Deadline On December 31: How To Avoid ₹1,000 Penalty

Taxpayers must link their PAN with Aadhaar by December 31, 2024, to avoid penalties. An inoperative PAN from January 1, 2026, could disrupt financial activities, warns the Income Tax Department.

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Tasneem Kanchwala Updated: Wednesday, December 24, 2025, 09:37 AM IST
Aadhaar-PAN Card Linking Deadline On December 31: How To Avoid ₹1,000 Penalty | File

Aadhaar-PAN Card Linking Deadline On December 31: How To Avoid ₹1,000 Penalty | File

Taxpayers have a deadline to link their Permanent Account Number (PAN) with Aadhaar, particularly those who received PANs based on an Aadhaar Enrolment ID submitted before October 1, 2024. That deadline is December 31. Failure to comply will render the PAN inoperative from January 1, 2026, attracting a penalty of Rs. 1,000 and disrupting key financial activities.

The Income Tax Department has emphasised the importance of this linkage to ensure seamless tax filing, processing of refunds, and other services. An inoperative PAN can lead to difficulties in banking transactions, filing income tax returns, and availing certain government benefits.

Who must link their PAN with Aadhaar?

This deadline primarily applies to individuals whose PAN was allotted using an Aadhaar Enrolment ID rather than the full Aadhaar number, especially for applications processed before October 2024. For new PAN applicants, the linking is now done automatically during the application process.

Existing PAN holders allotted on or before July 1, 2017 were required to link earlier, but this latest directive targets specific cases to close remaining gaps.

Step-by-step guide on Aadhaar- PAN card linking:

Linking can be done easily online, via SMS, or offline. Here are the detailed steps:

Online Method

1. Visit the Income Tax e-filing portal (incometaxindia.gov.in).

2. Select the 'Link Aadhaar' option under Quick Links.

3. Enter your PAN and Aadhaar number.

4. If a fee is applicable, click 'Continue to Pay Through e-Pay Tax'.

5. Enter your PAN again, confirm details, and provide a mobile number for OTP verification.

6. Validate using the OTP received.

7. Once successful, you will receive a confirmation.

Via SMS

Send a message in the format: UIDPAN <12-digit Aadhaar number> <10-digit PAN> to 567678 or 56161.

Example: UIDPAN 123456789012 ABCD12345E

Offline Method

Visit an authorised PAN service centre (operated by Protean or UTIITSL) with supporting documents and pay the Rs 1,000 fee if required.

Published on: Wednesday, December 24, 2025, 09:38 AM IST

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