CBDT Alert: Is Your PAN at Risk of Deactivation?

Procrastination is at its peak when it comes to linking Aadhaar with PAN. CBDT has extended PAN and Aadhaar linking deadlines multiple times. Every time, taxpayers have ignored it. According to the latest PAN Card News, CBDT has issued an ultimatum-kind of notice to PAN holders. If you haven't linked your Aadhaar with PAN, NOW is the time. 

In this blog, we will understand how to link your PAN with Aadhaar, and what happens if your PAN gets deactivated. 

What Does this CBDT Notice Really Say?

In case you got your PAN by providing an Aadhaar enrolment ID (not the final Aadhaar number) on or before 1 October, then you are required to provide your actual Aadhaar number and complete the PAN-Aadhaar link before 31st December 2025. 

In this particular update, the government has provided them time up to 31st December 2025 and permitted linking Aadhaar without the ₹1,000 late fees as long as this is done within the deadline.

What about everyone else?

To most people whose PAN was issued before this special category, the overall deadline already passed in 2023-24, and assuming you never linked, your PAN may already be out of operation unless you have paid the penalty. 

What Happens if Your PAN Card Gets Deactivated?

The following is what happens when PAN becomes inoperative:

• You are not allowed to file your ITR (and even when you do, it will not be processed).

• Your refunds get stuck. 

• Banks impose increased TDS, 20% on the interest on FDs and other payments.

• There is no possibility to invest in mutual funds or sell/buy shares.

• It becomes hard to rent or lease property due to the failure of PAN verification.

• The companies can experience issues with invoices and GST compliance.

Why Is the Government Being Strict About PAN–Aadhaar Linking?

Have you ever wondered why the government is stressing too much on PAN and Aadhaar linking? 

The explanation is as follows:

1. It removes redundant PAN cards.

2. Helps track tax evasion

3. Makes fraud harder

4. Enables improved financial reporting.

5. Relates identity to financial transactions.

How to Link Aadhaar with PAN

Enough theory. How to actually correct this?

The most basic pathway with the Income Tax e-filing portal is the following: 

Step 1: Visit the official portal

Visit the Income Tax e-filing website (the same site that you have previously used to file the ITR). 

Step 2: Find "Link Aadhaar"

On the home page, you will find on the quick links the link called Aadhaar Link. This is even when you are not logged in. 

Step 3: Enter your details

Write your PAN, your Aadhaar number and your name according to Aadhaar.

Verify your mobile number with an OTP. 

Step 4: Pay the linking fee if required

In case it requires a ₹1000 late charge, the website will take you to e-Pay Tax. Make payment online using net banking, card or UPI. Then proceed with linking. 

Step 5: Submit and wait for confirmation

After OTP verification, submit the request. You usually get a message that the linking is in process, and later an SMS confirming success or failure.​

Check out the complete guide here - How to Link Aadhar to PAN Card

Next Steps

We hope that after reading this blog, you understand the importance of PAN and Aadhaar card linking. If you have issued your PAN by providing an Aadhaar enrollment number (not the final Aadhaar number), now is the time to provide the Aadhaar number and update the details. Otherwise, your PAN may become inoperative post 31st December 2025 deadline. 

Frequently Asked Questions

How to check the Aadhar link with PAN?​

You can know your Aadhaar-PAN linking status online in less than a minute.

Method 1: Without logging in (Quick check)

Step 1: Go to the Income Tax E-filing portal (official government site).

Step 2: On the home page, under "Quick Links", click on "Link Aadhaar Status" or a similar link.

Step 3: Enter your PAN and Aadhaar number and then click on "View Link Aadhaar Status".

The screen will display whether your Aadhaar is already linked, not linked, or your PAN card is inoperative.

Method 2: After logging in to the portal

Step 1: Log in to the Income Tax e-filing portal using your PAN and password.

Step 2: On the Dashboard, check for "Link Aadhaar Status" or go to "My Profile" —> "Link Aadhaar Status".

Your current Aadhaar-PAN link status will be displayed there.

If the status indicates "not linked" or "inoperative", you should make the linking before filing returns or conducting major financial transactions.

How to link a PAN to a bank account​?

The precise steps to linking your PAN to a bank account differ from bank to bank, but the process is generally similar. 

Option 1: Using internet banking

Step 1: Log in to your bank's net banking portal.

Step 2: Go to Profile / Services / KYC / PAN update section [Different name in different banks].

Step 3: Select "Update / Link PAN" and fill out your PAN information according to your card.

Step 4: Submit the request and OTP (if asked) - you will receive SMS/Email once your PAN gets linked by the bank.

Option 2: Mobile banking application or SMS (if your bank has this alternative)

Step 1: Go to Profile / KYC / PAN update on your bank's mobile app. 

Step 2: Fill in your PAN and submit the request; OTP may be required.

Some banks also allow the PAN linking by sending SMS in a format given by the bank to a specific number; the bank then confirms by reply SMS.

Option 3: Visit the bank branch or ATM

Step 1: Visit your home branch with your PAN card (original + photocopy) and fill out the PAN update / KYC form.

Step 2: Submit it to the bank executive; he can check your original PAN for verification.

Step 3: After processing (usually a few days), you get an SMS or email saying that PAN has been linked to your account.

Some banks also provide the option of PAN update at ATM menus, under "other services" or "update PAN"; you enter or confirm your PAN and receive confirmation later. 

Once linked, your bank account can be pre-validated on the income tax portal for the direct credit of refunds. 

How to link PAN with aadhaar by SMS?​

Step 1: Make sure to link your mobile number with your Aadhaar; otherwise, visit an Aadhaar Seva Kendra to update it first.

Step 2: Open the SMS app on your phone.

Step 3: Type the message in this format:

UIDPAN <12 Digit Aadhaar> <10 Digit PAN>indiatoday+2 youtube 

Step 4: Send the above SMS on 567678 or 56161 on your Aadhaar-registered mobile. 

Step 5: Wait for an reply SMS

About the author

Mehul Jagwani

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Mehul is a seasoned content writer with a passion for simplifying complex accounting and GST topics. With a keen interest in entrepreneurship and business management, he specializes in creating informative and engaging content for themunim.com. His goal is to help businesses understand and implement accounting and GST software solutions effectively. When he's not crafting content, Mehul enjoys exploring new places and spending time with his Golden Retriever.