Your PAN may become inoperative from Jan 1 if you miss this deadline

Link PAN with Aadhaar by Dec 31 to avoid deactivation, says Income Tax department.

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The last day of December is the “final deadline” to link Permanent Account Number with Aadhaar, failing which taxpayers’ PAN risks becoming invalid from the New Year.

 

According to a notification issued by the Income Tax department on April 3, people who received a PAN using an Aadhaar enrolment ID before October 1, 2024, must link the two documents before the year-end. Once an Aadhaar number is issued, linking it to PAN becomes mandatory, even if the PAN was initially generated through the enrolment ID.

 

The rule is part of the government’s push to strengthen the tax system, prevent duplicate PANs and curb tax evasion. Missing the deadline could lead to serious financial and compliance issues.

An inoperative PAN means:

• You cannot file or verify your Income Tax returns (ITR).
• Refunds and pending ITR processing will be put on hold.
• Salary credits, mutual fund SIPs, or stock investments may fail due to invalid KYC.
• Tax deducted at source could be applied at a higher rate, with no credit reflecting in Form 26AS.

 

Even though the PAN can be reactivated after successful linking, the delay could cause disruptions in essential transactions and compliance gaps.

Who needs to act and who is exempt

This requirement applies to most resident taxpayers, but a few groups are exempt:

• Non-Resident Indians (NRIs)
• People aged 80 and above
• Residents of Assam, Meghalaya, and Jammu & Kashmir

 

Before linking, ensure that your name, date of birth and mobile number match in both PAN and Aadhaar databases to avoid rejection.

How to link PAN with Aadhaar

 

You can complete the linkage easily through the Income Tax e-filing portal:

 

• Visit incometax.gov.in.
• Log in using your PAN and Aadhaar details.
• Verify your mobile number and confirm using an OTP.
• Pay a linking fee of Rs 1,000, if applicable.
• Check the status through the “Link Aadhaar Status” option on the portal.

Tax professionals caution against waiting until the final days, when the portal typically faces heavy traffic.