Your PAN will be deactivated on January 1, 2026, if you don’t do THIS

Aadhaar-PAN card link: Your PAN card may get deactivated if not linked with Aadhaar as per CBDT rules. Know the deadline, risks of deactivation, and how to easily link your PAN with Aadhaar online.

It is mandatory to link your PAN with your Aadhaar by December 31, 2025 (Representative image).

3 min readNew DelhiNov 4, 2025 01:15 PM IST First published on: Nov 4, 2025 at 11:48 AM IST

Your Permanent Account Number (PAN), which you use to file your Income Tax Returns, open bank accounts, and for a host of other crucial purposes every day, runs the risk of getting deactivated if you are not abiding by the rules of the Central Board of Direct Taxes (CBDT). All PAN card holders must now mandatorily link their PAN with their Aadhaar numbers by the CBDT deadline or face the risk of PAN deactivation.

What happens if my PAN is deactivated?

Losing access to your PAN can land you in trouble with the authorities. Not just this, you will face a host of other problems without PAN.

If your PAN is deactivated, you cannot open a bank account or demat account or make cash deposits or fixed deposits above Rs 50,000.
Since opening a demat account is not possible without PAN, you cannot make investments in the share market or open SIP schemes.
You will not be able to apply for government schemes related to financial welfare of citizens.
Another downside to not having an active PAN is that you won’t be able to apply for loans from banks and similar financial institutions.
You won’t be able to buy or sell, a house or vehicle either if your PAN is deactivated.
Foreign currency transactions above Rs 50,000 will be impossible unless you furnish an active PAN.
PAN is mandatory to conduct business as well.

How to link PAN with Aadhaar?

You can link your PAN with AADHAAR very easily by following the below-mentioned steps:
Visit the Income Tax e-filing portal https://www.incometax.gov.in/iec/foportal.
Click on the ‘Link Aadhaar’ tab on the left panel.
Enter your PAN and Aadhaar number and click on the ‘validate’ button.
If your Aadhaar and PAN and already linked, it will show a pop-up message showing the same. If not, it will ask you for your mobile number where an OTP will be sent.
This will complete the procedure to link your PAN to your Aadhaar number.

The Ministry of Finance notified the mandate via CBDT notification number 26/2025 in April. Ensure that you comply with the CBDT mandate to avoid hassles later.

What is the CBDT?

The CBDT, or the Central Board of Direct Taxes, is a statutory body in India responsible for providing input on policy and planning for direct taxes and administering direct tax laws through the Income Tax Department.

What is the difference between CBDT and Income Tax Department?

The CBDT functions under the Department of Revenue in the Ministry of Finance. The policy and planning framework for direct taxes in India is formulated with the inputs by the CBDT.

The Income Tax Department is controlled and supervised by the CBDT. The I-T Department ensures that laws and rules and properly enforced.