The Income Tax Department has issued an important alert concerning Aadhaar-PAN linking, specifically for those who used an Aadhaar enrolment ID instead of an Aadhaar number when applying for a PAN card. It is now mandatory to provide your actual Aadhaar number.
Failing to complete this linking process by the given deadline could result in your PAN card becoming inoperative. This new directive aims to ensure all records are accurate and up-to-date within the tax system.
Understanding the New Requirement
This guideline specifically targets individuals who obtained a PAN card using an Aadhaar Enrollment ID on or before October 1, 2024. This situation commonly arises when an individual’s Aadhaar number has not yet been issued at the time of their PAN application, preventing the direct linking of Aadhaar and PAN. Consequently, these individuals are now required to furnish their genuine Aadhaar number to the Income Tax Department to rectify their records.
Upcoming Deadline for Compliance
The government has set December 31, 2025, as the final date for linking PAN with Aadhaar. If a PAN holder fails to provide their Aadhaar number to the department by this stipulated deadline, their PAN card will be rendered inactive starting January 1, 2026. An inactive PAN card will directly affect financial transactions and tax-related activities, as it will no longer be considered valid for official use.
Essential for Tax Filers
For individuals who are required to file income tax returns, it is crucial to complete this linking process before July 31. Failure to provide the Aadhaar number information on time may lead to complications during income tax return filing. Therefore, it is advisable to complete the linking process well in advance to avoid any potential issues. This instruction has been issued by the Central Board of Direct Taxes (CBDT), under the Ministry of Finance, to maintain accurate and updated records for PAN holders and strengthen the tax system.
Steps to Update Your Aadhaar Number
While the CBDT notification does not explicitly detail the process for submitting Aadhaar number information to the Income Tax Department, it is anticipated that the standard PAN-Aadhaar linking procedure will apply. This generally involves updating your PAN and Aadhaar details through the e-filing portal. It is also understood that no penalty will be levied for this particular update.
