PAN Aadhaar Link: Will Your PAN Card Be Deactivated? Danger If Not Linked With Aadhaar! Know What To Do Now

PAN Aadhaar Link: Your Permanent Account Number (PAN), which is used for filing Income Tax Returns, opening bank accounts, and many other crucial daily purposes, is at risk of deactivation. According to the rules of the Central Board of Direct Taxes (CBDT), all PAN card holders must now mandatorily link their PAN with their Aadhaar numbers. Failure to do so within the specified deadline could lead to the deactivation of your PAN card.

In April, the Ministry of Finance issued this mandate via CBDT notification number 26/2025. Therefore, it is extremely important to comply with this CBDT directive to avoid any hassles later.

What happens if your PAN is deactivated?

Losing access to your PAN can land you in trouble with the authorities. Not only that, but you will also face a host of other problems without an active PAN.

• Hurdles in Banking Transactions: If your PAN is deactivated, you cannot open a new bank account or a demat account. Additionally, you cannot make cash deposits or fixed deposits above Rs 50,000.
• Problems in Investment: Since opening a demat account is not possible without a PAN, you cannot invest in the share market or open SIP schemes.
• Exclusion from Government Schemes: You will not be able to apply for various government schemes related to the financial welfare of citizens.
• Difficulty in Getting Loans: You won’t be able to apply for loans from banks and similar financial institutions.
• Restrictions on Property & Vehicle Transactions: With a deactivated PAN, you cannot buy or sell a house or a vehicle.
• Foreign Currency Transactions: Transactions involving foreign currency above Rs 50,000 will be impossible.
• Business Operations: An active PAN is also mandatory to conduct business.

How to link PAN with Aadhaar?

You can very easily link your PAN with Aadhaar by following the steps mentioned below:

• First, visit the Income Tax e-filing portal: https://www.incometax.gov.in/iec/foportal
• Click on the ‘Link Aadhaar’ tab on the left panel of the website.
• Enter your PAN and Aadhaar number and click on the ‘Validate’ button.
• If your Aadhaar and PAN are already linked, a pop-up message will show the same. If not, it will ask for your mobile number where an OTP will be sent.
• Submitting this OTP will complete the procedure to link your PAN to your Aadhaar number.

What is the difference between CBDT and the Income Tax Department?

The Central Board of Direct Taxes (CBDT) 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. The CBDT functions under the Department of Revenue in the Ministry of Finance. On the other hand, the Income Tax Department is controlled and supervised by the CBDT. The I-T Department ensures that laws and rules are properly enforced.

The information provided in this article is for informational purposes only. Please consult with an expert before making any decisions.