Income Tax Department Mandates PAN Update with Aadhaar Number

The Income Tax Department has released a new directive that affects individuals whose PAN (Permanent Account Number) was issued using an Aadhaar Enrolment ID.

According to the latest notification, such individuals are now required to update their PAN with their original Aadhaar number by December 31, 2025.

This move follows a recent policy change introduced in the Union Budget 2025, which discontinues the provision of accepting Aadhaar Enrolment IDs in place of Aadhaar numbers starting October 1, 2024.

Legal Basis Under Income-tax Act

Section 139AA(2A) Comes into Force

The directive was officially announced by the Central Board of Direct Taxes (CBDT) under the authority of Section 139AA(2A) of the Income-tax Act, 1961.

“The Income Tax Department has issued an important notification, requiring PAN card holders who obtained their PAN using an Aadhaar Enrolment ID to update it with their original Aadhaar number by December 31, 2025.”

Failing to make this update could lead to issues in filing income tax returns, accessing government-linked financial services, or completing high-value transactions associated with PAN.

Understanding PAN and Aadhaar

What is PAN?

PAN is a 10-digit alphanumeric identifier issued by the Income Tax Department. It plays a crucial role in:

• Filing income tax returns

• Verifying identity during large financial transactions

• Linking with financial services like mutual funds, bank accounts, etc.

What is Aadhaar?

Aadhaar is a 12-digit unique identity number issued by the Unique Identification Authority of India (UIDAI). It is:

• A proof of identity and address

• Required for government subsidies, welfare schemes, and digital verifications

• Widely used for KYC in financial institutions

Why This Update Is Critical for PAN Holders

Individuals who applied for PAN using their Aadhaar Enrolment ID before October 1, 2024, must now update their record to include their actual Aadhaar number.

“Failure to update the PAN with the correct Aadhaar number could result in difficulties while filing income tax returns or conducting high-value financial transactions linked to your PAN.”

With Aadhaar becoming an integral part of digital identification and e-governance, the government aims to eliminate duplication and ensure greater accuracy in tax and financial records.

How to Update Aadhaar in Your PAN

Step-by-Step Process for Updating Aadhaar in PAN

“If your PAN was issued using an Aadhaar Enrolment ID before October 1, 2024, you must update it with your original Aadhaar number.”

You can update your Aadhaar in PAN using the following steps:

Through Income Tax Department Portal

1. Visit the official website: https://www.incometax.gov.in

2. Go to the “Link Aadhaar” section

3. Enter your PAN and Aadhaar number

4. Validate using OTP received on your Aadhaar-registered mobile number

5. Submit and track status online

Through Authorized PAN Service Centres

Alternatively, visit authorised PAN service agents like NSDL or UTIITSL with a copy of your Aadhaar card and PAN for manual update.

Deadline Alert – Act Before December 31, 2025

“The last date to make this update is December 31, 2025. Ensure you update your details in time to avoid complications related to tax filings or financial transactions.”

Given the strict regulatory timelines, it’s crucial not to delay this update, especially with tax season approaching and PAN being mandatory for all income-related filings.

Conclusion: Ensure Compliance to Avoid Financial Disruptions

The latest mandate from the Income Tax Department emphasizes the growing importance of accurate PAN-Aadhaar linkage for financial transparency and compliance. With the Union Budget 2025 tightening Aadhaar norms, PAN holders are advised to verify and update their Aadhaar details at the earliest to avoid unnecessary hassles in the future.