From July 1, 2025, Aadhaar authentication is mandatory to get a new PAN card. Without Aadhaar verification, PAN won’t be issued. Here's what you must do.
In a major update in rules for usage of Aadhaar for various services, the government has made furnishing Aadhaar number mandatory for PAN applications. The new rule has come into effect from today, July 1, 2005.
It has become mandatory to provide Aadhaar number and get it authenticated to get a new PAN (Permanent Account Number), the government has said.
Under the new rule of the Central Board of Direct Taxes (CBDT), from now on, the application for PAN card will be considered valid only when the applicant’s Aadhaar number is registered and it is confirmed online. The purpose of this decision is to make the tax system more transparent, prevent duplicate PAN and strengthen the digital ecosystem.
What does the new PAN application rule mean?
Till now, quoting of Aadhaar number was not needed for PAN applications. PAN card was made only with identity card and birth certificate. So now, understand what has changed in terms of process:
If you want to get a new PAN, then first you have to give your Aadhaar number
Then Aadhaar has to be verified through OTP.
Without this, PAN will not be issued now.
This process is completely available online on the e-filing portal of the Income Tax Department.
What are the rules for already made PAN card holders?
If your PAN is already made, and you have not yet linked it with Aadhaar, then you have time till 31 December 2025.
If Aadhaar-PAN is not linked by this date, your PAN will become “inoperative”.
If there is a delay in linking, a fine of Rs 1,000 can also be imposed.
Once the PAN becomes inoperative, neither will you be able to file ITR nor do financial work like banking, mutual funds.
Current status of PAN-Aadhaar linking
According to government data, till March 2024, there were about 74 crore PAN card holders in the country. Out of these, about 60.5 crore PANs have already been linked to Aadhaar. Now the remaining people will have to complete this process as soon as possible, otherwise they may face huge problems.
Why is the government making this change?
The purpose of this step is –To curb tax evasion and fake PAN cards
To strengthen digital KYC
To make the process of tax filing and refund fast and secure
To advance the government’s “Digital India” and “e-governance” initiative
According to a CBDT official, “Verification of Aadhaar-related information will ensure that a person has only one valid PAN in his name.”
What to do now to get a new PAN?
If you want to get a new PAN:
Go to http://www.incometax.gov.inEnter your Aadhaar number at the time of application
Verify Aadhaar through mobile OTP
Then apply for PAN
If your PAN is already made, then get it linked to Aadhaar now so that any kind of obstruction can be avoided in future.
Summing up….
Aadhaar has become mandatory for PAN card from July 1, 2025. This rule is a big step towards making the tax system transparent. If you have not yet linked Aadhaar-PAN or are thinking of getting a new PAN, then proceed keeping this rule in mind.