Update: Final Deadline for PAN-Aadhaar Linking
(Dec 31, 2025)

The government has clarified that while general deadlines for linking have passed, a specific final window remains open for a particular category of taxpayers.

1 Who Does This Specific Deadline Apply To?

This update primarily targets individuals who were issued a PAN card on the basis of an Aadhaar Enrolment ID rather than a final Aadhaar number (this usually happened during the transition period or for new applicants whose Aadhaar was still in process).

2 Consequences of Missing the Deadline

If the linking is not completed by December 31, 2025, the following will occur starting January 1, 2026:

• Inoperative PAN: Your PAN will become "inoperative," meaning it is essentially "dead" for most financial transactions.
• ITR Rejection: You will be unable to file Income Tax Returns (ITR).
• Refunds Halted: Any pending tax refunds will not be processed or issued.
• Higher TDS/TCS: Under Sections 206AA and 206CC, tax will be deducted at the highest possible rates (often 20% or more).
• Banking Blocks: Banks and mutual funds may freeze accounts or stop new investments/redemptions due to "Invalid KYC."

3 The "Relief Window" for Others (Circular No. 9/2025)

For general taxpayers whose PAN is already inoperative, the CBDT issued Circular No. 9/2025 in July 2025, providing a way to avoid high penalties:

• If you make your PAN operative (link it) within two months of a financial transaction, the higher TDS/TCS rates will not be applied retroactively.
• However, a standard ₹1,000 fee remains mandatory for reactivating any inoperative PAN.

4 How to Check Your Status & Link