CBDT Update: PAN Will Become Inactive from January 1, 2026, If Not Linked with Aadhaar

By Prateek Maurya Nov 5, 2025 1

Central Board of Direct Taxes (CBDT) has made it mandatory to link your PAN with Aadhaar. If you does not do it before the deadline, your PAN will become inactive and you won’t be able to use it for any financial or official work.

The last date to link PAN with Aadhaar is December 31, 2025. From January 1, 2026, all unlinked PAN cards will automatically be deactivated.From now on, people applying for a new PAN card must verify their identity using Aadhaar. This ensures that personal details are the same in both PAN and Aadhaar records.

What Happens If Your PAN Becomes Inactive?

If your PAN is not linked and gets deactivated you may face many problems:-

You can’t open a bank or demat account.
You can’t deposit or withdraw more than ₹50,000 in cash or fixed deposits.
You can’t invest in the stock market or start SIPs.
You can’t apply for government financial schemes.
Banks will not approve your loan applications.
You can’t buy or sell property or vehicles.
You can’t make foreign currency transactions over ₹50,000.
PAN is also needed to run a business legally.

How to Link PAN with Aadhaar

Linking PAN with Aadhaar is a simple online process:

Step 1: Visit the Income Tax e-filing portal.
Step 2: Click on the ‘Link Aadhaar’ option on the homepage.
Step 3: Enter your PAN and Aadhaar number, then click on ‘Validate’.
Step 4: Once validated, your PAN will be successfully linked with Aadhaar.

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Prateek Maurya

Prateek Maurya is the founder of Explain24. He holds a Bachelor’s degree in Computer Science and has experience of over 3 years as a content writer. Before the establishment of Explain24, he has experience as a content writer at StudyCafe, where he worked on crafting well-informed, informative, and reader-friendly articles. He currently heads Explain24 with a fervent aim to put out authentic and easily readable news pieces.