Soon, your salary won’t be credited to your account, your mutual fund investments will be on hold, and your routine financial transactions will be paused. This will probably be anyone’s worst nightmare, and it would be yours as well. Everything will come to a halt. Thousands to millions of people in India will have to face this scenario if their PAN isn’t linked with Aadhaar. If the deadline isn’t met for your PAN card, there is a higher possibility that it might stop working. Don’t panic yet, cause you still have a way out till December 2025.
As we know already that the Indian government has mandated the linking of PAN cards with Aadhaar cards and banks. Now the deadline has been decided, and according to it, you must do it by the end of this year. If you fail to do so, then it will cause the PAN to become inoperative from January 1st, 2026. Yes, the New Year’s night will be darker than you think.
But why is this happening, and how can you link your Aadhaar with your PAN card? Let Corporate Soldiers help you figure this out!
Why Is This Step Necessary?
For the government, this step is quite necessary to put a stop to so many things. The government is thinking ahead, and this mandatory step is a part of it. This is happening because the government wants to put a stop to tax evasion, remove duplicate PAN cards, and make the tax administration process smoother through unique identification.
We all know that no matter how important the PAN card is, it can’t be used as an address proof. PAN card, being a 10-character alphanumeric code issued by the Income Tax Department, can be used as a unique taxpayer identification number for financial and tax-related transactions. The Aadhaar card is a 12-digit unique identity number issued by the UIDAI. Since this card is based on biometric and demographic data, it can negate fraudulent activities. Hence, linking these two IDs will ensure more authenticity and make the system more transparent. Also, it will make tax processing even more efficient than ever, and as we said, it will cut down on fraudulent financial activity.
Let’s Know The Process!
So, how can you do it without being confused? Let us help you in this process. First thing you should do is to open the Official Portal of the Indian Income Tax e-filing website, and there you should find an option ‘Link Aadhaar’ under all the quick links mentioned on the left side of the website. When this link opens, you will find the boxes to put the details of your PAN card and Aadhaar card. Once you are done entering the details, you can click on to validate button on the right side of the screen. If your PAN card is already linked to your Aadhaar card, then the pop-up will notify you. If not, then you can further complete the process by entering a One-time password or OTP, which you will get on your registered mobile number (linked with your Aadhaar), to authenticate. Once you enter it, submit the request to validate. Voila! It’s done in a simple and easy process!
What Happens After You Miss The Deadline?
Nothing will work, whether it is the transaction or other financial investments. This is because once you miss the deadline, your PAN will be inoperative. But there is a workaround to it. So, if your PAN is not working anymore due to a missed deadline, you will have to pay a penalty of ₹1,000. This penalty can be paid via the e-filing portal’s e-Pay Tax facility. Here, once you pay the fine, you can submit the PAN-Aadhaar linking request for reactivation. However, this process may take up to 30 days for completion. But still, this wait is better than a non-operative PAN card.
An inactive PAN means you can’t file the income tax returns. It will cause delays or blocks in salary credits and tax refunds. Also, you can’t even open a new bank account, open a Demat account or make any investment. It will put a stop to everything. It doesn’t end here, higher TDS rates may be applied, and other transactions requiring PAN, such as property registration or stock trading, will be hindered. That’s why Corporate Soldiers is reminding all the PAN card holders to link their PAN to Aadhaar before December ends.
Some Exemptions Are There!
While this process applies to all Indian citizens, certain individuals are exempt from it. This means that the residents of certain states, such as Assam, Meghalaya, and the union territory, Jammu & Kashmir, and non-residents under the Income Tax Act. Also, all the senior citizens above 80 years, and non-citizens of the mentioned states and India, these groups are not required to link PAN with Aadhaar.
The Clock is Ticking; You Must Remember
Deadlines should be taken seriously, and the clock is already ticking each day. Remember, this process is not a restriction, but to restore and improve our system. It is a kind of nationwide effort to tag and verify every legitimate participant. This process will ensure that the system’s resources flow to real individuals, not to some duplicate registrations or fraudulent accounts.
Let’s help the government create a transparent system! Shall we?
