Aadhaar to be Mandatory for New PAN Applications from July 1; Existing Users Must Link by December 31

Beginning July 1, 2025, Aadhaar will be mandatory for anyone applying for a new Permanent Account Number (PAN), according to a directive issued by the Central Board of Direct Taxes (CBDT). The move is part of a broader push toward digitizing India’s tax system and strengthening identity verification mechanisms.

Under the new rule, applicants seeking a new PAN will be required to provide their Aadhaar number at the time of application. Aadhaar authentication will become a necessary step in the process, marking a significant shift from previous guidelines where alternative identification documents were accepted. The aim is to create a more secure, transparent tax database and prevent the issuance of multiple or fraudulent PANs.

In addition to changes for new applicants, the CBDT has also extended the deadline for existing PAN holders to link their Aadhaar. Individuals now have until December 31, 2025, to complete this linking process. Failure to do so will result in the PAN card becoming inoperative, meaning it cannot be used for essential financial activities such as filing income tax returns, opening bank or demat accounts, or conducting high-value transactions.

The Aadhaar-PAN linkage is seen as a crucial step toward streamlining tax compliance, reducing identity fraud, and ensuring that every taxpayer is uniquely identified. Officials believe that the biometric-based integration will make the overall tax system more efficient and robust.

Taxpayers are encouraged to complete the linkage process through the Income Tax Department’s official e-filing portal well before the deadline to avoid any service disruptions. This latest initiative is part of the government’s broader digital transformation strategy aimed at enhancing accountability and efficiency within India’s financial ecosystem.

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