The government has introduced a major change in PAN card rules. Starting July 1, 2025, the Aadhaar card has been made mandatory for applying for a PAN card. Without Aadhaar, you won't be able to obtain a PAN card. Plus, existing PAN cardholders must link their PAN with Aadhaar by December 31, 2025, to avoid their PAN becoming inactive from January 1, 2026. Here's what you need to know

PAN Card: A Unique Identification Number

A PAN card is a 10-digit alphanumeric identification number issued by the Income Tax Department. It's essential for various financial activities, such as filing income tax returns, opening a bank account, and investing in the stock market. If you don't have a PAN card, you can obtain it in minutes through the Income Tax Department's e-PAN service.

New rule for PAN Card applications

The Central Board of Direct Taxes (CBDT) has introduced a new rule, making Aadhaar verification mandatory for new PAN card applications. From now on, PAN card applications will be considered valid only when the applicant's Aadhaar number is registered and confirmed online. This decision aims to increase tax compliance, prevent duplicate PAN cards, and promote digitisation. Existing PAN cardholders must link their PAN with Aadhaar by December 31, 2025, to avoid penalties and ensure their PAN remains active.

New PAN Application Rule: What you need to know

The process of applying for a PAN card has changed. Previously, you didn't need to provide your Aadhaar number to get a PAN card, and it could be made with just an identity card and birth certificate. However, with the new rule.

• You will need to provide your Aadhaar number to apply for a new PAN card.


• Your Aadhaar will be verified through an OTP (One-Time Password).


• Without this verification, your PAN card application won't be processed.


• The entire process is now available online on the Income Tax Department's e-filing portal.

Existing PAN Card Holders: Linking Aadhaar is a must

If you already have a PAN card and haven't linked it with your Aadhaar, here's what you need to know.

• You have until December 31, 2025, to link your PAN with Aadhaar.


• If you fail to link by this date, your PAN will become "inoperative".


• Delayed linking may attract a fine of Rs 1,000.


• Once your PAN becomes inoperative, you'll face restrictions on:


• Filing Income Tax Returns (ITR)


• Conducting financial transactions like banking and mutual fund investments.