PAN Card Update 2025: New Aadhaar Linking Rules Implemented, Learn the Complete Process and Deadline
The Income Tax Department has issued a new circular in mid-2025, aimed at making the Aadhaar-PAN linking system more accurate and transparent. This new rule targets those who provided their Aadhaar Enrollment ID instead of their Aadhaar number when applying for their PAN card. The government aims to ensure that every PAN holder in the country has a verified Aadhaar number linked to their PAN card, eliminating duplicate or fake PAN cards.
What the New Circular Says
According to the new rule, individuals who obtained a PAN card using only their Aadhaar Enrollment ID before October 1, 2024, are now required to update their actual Aadhaar number before December 31, 2025.
Previously, when Aadhaar cards were being made, PANs could be obtained using the enrollment ID, but this feature has now been discontinued.
Now, the government will only recognize PAN cards linked to Aadhaar numbers verified in the UIDAI database. This will help curb tax evasion and fake identities.
Who Needs to Update?
This rule doesn’t apply to everyone. Only those whose PAN was generated using the Aadhaar enrollment ID (a 28-digit number) will need to update it.
- If your PAN is already linked to your full Aadhaar number, you don’t need to do anything.
- If you don’t know which ID you used, you can check your PAN-Aadhaar status by visiting the Income Tax e-filing portal. This will indicate whether your Aadhaar is linked or requires an update.
How to Link PAN with Aadhaar
To complete this process, you must log in to the Income Tax e-filing website.
- Login with your PAN and password.
- Select the “Aadhaar Update” option.
- Enter your actual Aadhaar number.
- An OTP will be sent to the mobile number linked to Aadhaar.
- Upon entering the OTP, your PAN will be verified by UIDAI and updated.
Keep in mind that the name, date of birth, and gender information on your PAN and Aadhaar must match exactly, otherwise the linking may fail. If there are any discrepancies, first correct them on the UIDAI or NSDL/UTIITSL portal.
Deadline and Penalties
The deadline for updating Aadhaar is December 31, 2025. If you fail to do so on time, your PAN will become inoperative from January 1, 2026.
An inactive PAN means you will:
- Not be able to file income tax returns,
- Not be able to receive refunds,
- Not be able to complete financial transactions related to banking, property, or investments.
Additionally, banks and financial institutions may delay or deny your services. Furthermore, the Income Tax Department has warned that penalties or higher TDS rates may be imposed.
Temporary Relief on TDS and TCS
The government has also clarified that if a person’s PAN is deactivated, higher rates apply on Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). However, as a relief, if the PAN is reactivated between April 1, 2024, and July 31, 2025, the higher rates will not apply.
This relief will also apply for transactions after August 1, 2025, for a period of two months, provided the PAN is reactivated on time.
Relief for Deceased Taxpayers
The Income Tax Department has clarified that if a taxpayer has died, higher TDS or TCS rates will not apply on their PAN.
Their legal heirs or representatives will not face any penalty.
Aadhaar Mandatory for New PAN Applications
All new PAN applications made after July 1, 2025, will require an Aadhaar number. Applicants will now be required to have an active Aadhaar number before applying for a PAN. This will be instantly verified against the UIDAI database.
What to Do Now
If you believe your PAN was generated using your Aadhaar enrollment ID, check your status immediately:
- Visit www.incometax.gov.in to check your PAN-Aadhaar link status.
- If an update is required, initiate the process.
- Ensure your mobile number is linked to both accounts to receive OTPs.
- Complete the linking before December 2025 to avoid any delays.
Beware of Fake Messages
With the update process underway, fraudsters may send fake emails, messages, or links asking for PAN or Aadhaar information. Do not click on any such links or messages and never share OTPs or personal information.
Use only government websites:
- For PAN updates: www.incometax.gov.in
- For Aadhaar correction: www.uidai.gov.in
Conclusion
This new rule is a major step towards making the Aadhaar-PAN linking system transparent and secure. It will not only help prevent tax evasion and duplicate PANs but will also facilitate financial transactions. Those who are eligible should complete this process in time to avoid future problems.
Updating on time and being cautious of fraudulent messages are the safest steps. This article is for general information purposes only. For tax or legal advice, contact a qualified tax advisor.