The government has announced that all individuals must link their PAN card with Aadhaar by 31 December 2025. Failing to do so will result in your PAN card becoming inactive. This requirement applies to those who obtained their PAN using Aadhaar prior to 1 October 2024, while the deadline for others was 30 June 2023. Consequences of not linking your PAN include: inability to file Income Tax Returns (ITR), potential delays or non-receipt of tax refunds, increased TDS (20%) on fixed deposits, restrictions on opening bank or demat accounts, difficulties in obtaining debit or credit cards, challenges in applying for loans, limitations on deposits or withdrawals exceeding ₹50,000, and issues with paying insurance premiums.
The significance of linking PAN and Aadhaar lies in their necessity for tax, banking, and monetary transactions. Without the linkage, various financial operations will be hindered. Key dates to remember include: the final date of 31 December 2025, after which the PAN will become inactive, leading to complications in banking, tax filing, and loan applications.