
Business
Aadhaar Now Mandatory for New PAN Cards: What You Need to Know in 2025
Big changes are coming for anyone applying for a new PAN card in India. Starting July 1, 2025, you must have a valid Aadhaar number to get a PAN card. This new rule is part of the government’s efforts to make identity verification stronger and prevent the misuse of PAN cards for tax evasion.
What’s Changing for PAN Card Applications?
- From July 1, 2025, Aadhaar will be the only accepted document for new PAN card applications.
- You can no longer use voter ID, passport, or birth certificate for PAN verification.
- The application process will be fully digital and Aadhaar-based, making it faster and more secure.
What About Existing PAN Card Holders?
- If you already have a PAN card, you must link it with your Aadhaar by December 31, 2025.
- If you don’t link your PAN and Aadhaar by the deadline, your PAN will become inactive from January 2026.
- You can reactivate your PAN later by linking it with Aadhaar.
Why Is This Rule Important?
- The government found that some people had multiple PAN cards or used someone else’s PAN to avoid taxes.
- Linking PAN with Aadhaar helps stop fraud and ensures everyone has only one PAN card.
- This step also supports India’s move towards a digital, transparent tax system.
What Is PAN 2.0?
- PAN 2.0 is a new, upgraded version of the PAN card system.
- It comes with features like a smart QR code, biometric security, and a microchip for extra protection.
- PAN 2.0 will be linked automatically with DigiLocker and Aadhaar, making KYC and e-verification easier.
- You can choose between a physical card and a digital-only PAN.
Who Is Exempt from PAN-Aadhaar Linking?
- Residents of Assam, Jammu & Kashmir, and Meghalaya
- Non-resident Indians (NRIs)
- People aged 80 years or above
- Foreign citizens
How to Link PAN and Aadhaar
- You can link your PAN and Aadhaar online through the income tax department’s portal.
- There is no penalty if you link them before December 31, 2025.
After the deadline, a penalty may apply for late linking.