Aadhaar Now Mandatory for PAN Cards: New Rules Start July 1 - Here’s What to Do

Starting July 1, 2025, the Indian government has made it mandatory to provide your Aadhaar number and get it verified if you want to apply for a new PAN card. This change was announced as part of a larger move to improve how Aadhaar is used for different services.

The Central Board of Direct Taxes (CBDT) stated that any new application for a PAN will only be valid if the applicant’s Aadhaar number is shared and confirmed online. The government says this step will help make the tax system more transparent, stop duplicate or fake PAN cards, and improve the digital tax ecosystem.

What Has Changed in the PAN Application Process?

Earlier, you could get a PAN card without mentioning your Aadhaar. You only needed documents like an identity proof and birth certificate.

Now, this has changed. If you are planning to apply for a new PAN card, you will need to:

• Enter your Aadhaar number when you fill out your application form.
• Complete Aadhaar verification through a One-Time Password (OTP) sent to your mobile number.

If you do not complete these steps, your PAN card will not be issued.

This process is fully digital and can be done on the Income Tax Department’s e-filing portal.

What Should Existing PAN Card Holders Do?

If you already have a PAN card and have not linked it with your Aadhaar number yet, there is still time to do it. The government has set a deadline of December 31, 2025 to link your PAN with Aadhaar.

If you fail to link them by this date:

• Your PAN will become “inoperative.”
• You will not be able to file your Income Tax Return (ITR).
• You will not be able to do important financial activities such as banking, investing in mutual funds, or other transactions where PAN is required.

Additionally, if you delay linking, you may be charged a penalty of Rs 1,000.

Current Progress of PAN-Aadhaar Linking in India

According to official data, as of March 2024, India has around 74 crore PAN card holders. Out of these, about 60.5 crore PAN cards have already been linked with Aadhaar. The remaining PAN holders will now have to complete this process soon to avoid any disruptions.

Why Has the Government Introduced This Rule?

The government has explained that this change is meant to:

• Reduce tax evasion and prevent people from holding multiple or fake PAN cards.
• Make digital Know Your Customer (KYC) processes stronger and safer.
• Speed up tax filing and processing of refunds by confirming the identity of taxpayers.
• Support the Digital India and e-governance initiatives to make government services more efficient and technology-driven.

An official from the CBDT said that verifying Aadhaar details will ensure every person has only one valid PAN card in their name.

Read More:Key Financial Changes from July 2025: Aadhaar-PAN Linking, Taxes, Railways, HDFC Credit Cards, and More! 

How to Apply for a New PAN Card Now

If you are planning to get a new PAN card, here are the steps you need to follow:

1. Go to the official website: www.incometax.gov.in
2. Start the application process for a new PAN.
3. Enter your Aadhaar number when prompted.
4. Complete the Aadhaar verification by using the OTP sent to your registered mobile number.
5. Submit your application online.

For those who already have a PAN card but haven’t linked Aadhaar yet, it is advisable to complete the linking process now so you don’t face any issues in the future.

Conclusion

From July 1, 2025, Aadhaar has become compulsory for getting a new PAN card. This change is a significant step toward making India’s tax system more transparent and digitally secure. Whether you need to apply for a new PAN or link your existing one, make sure you follow these rules to avoid fines, delays, or problems with your financial activities.

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