The Central Board of Direct Taxes (CBDT) has issued a major update regarding PAN card rules, which will come into effect from July 1, 2025. According to the new regulation, Aadhaar will now be mandatory for obtaining a new PAN card.

This move is aimed at enhancing transparency in the tax system, eliminating duplication, and promoting digital compliance. If you’re planning to apply for a PAN card or haven’t linked your Aadhaar yet — now is the time to act.

🔹 What Changes from July 1?

Until now, individuals could apply for a PAN card using any valid identity proof and date of birth certificate. However, from July 1, 2025, Aadhaar will become a mandatory document for PAN card applications.

Without an Aadhaar number, no new PAN card application will be accepted.

🧾 What if You Already Have a PAN Card?

If you already hold a PAN card and haven’t linked it with your Aadhaar yet, you must do so before December 31, 2025.

Failure to complete this process by the deadline will result in your PAN card being marked as “inactive”.

⚠️ What Happens If PAN Becomes Inactive?

An inactive PAN card can lead to several serious consequences:

• ❌ You won’t be able to file Income Tax Returns (ITR)

• ❌ Trouble in opening fixed deposits, applying for loans, or conducting high-value transactions

• ❌ Disqualification from availing government benefits, subsidies, or schemes

• ❌ Issues with mutual fund, stock market, and insurance transactions

📌 Aadhaar-PAN Linking Deadline

The CBDT has made it mandatory for all PAN holders to link their Aadhaar with PAN by December 31, 2025. After this date, all unlinked PAN cards will automatically become invalid.

📲 How to Link Aadhaar with PAN?

Here are 3 simple ways to link your PAN with Aadhaar:

Online via Income Tax Website:
Visit https://www.incometax.gov.in and follow the instructions.

Via SMS:
Send an SMS in the following format:
UIDPAN <12-digit Aadhaar> <10-digit PAN>
to 567678 or 56161.

Offline:
Visit any nearby PAN or Aadhaar service center and complete the linking.

🆕 For New PAN Card Applicants

From July 1, 2025:

• Aadhaar will be mandatory for new PAN card applications

• Applicants will need to complete OTP or biometric authentication

• PAN applications without Aadhaar will be rejected

🎯 Government's Objective

This new policy is aimed at:

• 📌 Eliminating duplicate PAN cards

• 📌 Preventing tax frauds and fake identities

• 📌 Simplifying tax compliance through digital verification

The government believes this move will further strengthen India’s Digital Tax Infrastructure and ensure accurate identity verification for all taxpayers.

If you haven’t linked your PAN with Aadhaar yet, make sure you do it before December 31, 2025, to avoid deactivation. And if you plan to apply for a new PAN card post-July 1, 2025, ensure you have a valid Aadhaar card ready.

Taking timely action now will help you avoid future tax complications and ensure uninterrupted access to financial services.