PAN Holders with Aadhaar Enrollment ID Must Link Aadhaar by Dec 31, 2025: CBDT Issues Mandatory Directive

New income tax rule mandates Aadhaar number submission for PAN holders with applications filed before Oct 1, 2024

New Delhi, April 3, 2025 — In a significant compliance update, the Central Board of Direct Taxes (CBDT) has amended the Income-tax Rules, 1962, making it mandatory for individuals who were allotted a Permanent Account Number (PAN) based on their Aadhaar Enrolment ID to furnish their actual Aadhaar number to the Income Tax Department by December 31, 2025.

The directive, published through G.S.R. 217(E) and S.O. 1605(E) in the Gazette of India on April 3, 2025, falls under the ninth amendment to the Income-tax Rules, 1962, and comes into effect immediately upon publication.

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Who Is Affected by the New Rule?

This new compliance measure targets a specific group:

• Individuals who received PANs based on their Aadhaar Enrolment ID, not the actual Aadhaar number.
• Their Aadhaar application must have been filed before October 1, 2024.

These individuals are now obligated to intimate their Aadhaar number to either of the following authorities:

• The Principal Director General of Income-tax (Systems),
• The Director General of Income-tax (Systems), or
• Any authorized official designated by the Central Board of Direct Taxes.

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Deadline and Penalty Risk

As per the CBDT notification, such persons must complete the Aadhaar-PAN linking on or before December 31, 2025. While the notification doesn’t explicitly mention penalties for non-compliance, failure to adhere to previous Aadhaar-PAN linking deadlines has led to PAN deactivation or penalties under Section 234H of the Income-tax Act.

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Rule Insertion and Legal Basis

The notification introduces Rule 114(5AA) into the Income-tax Rules, 1962, which reads:

“Every person who has been allotted permanent account number on the basis of Enrolment ID of Aadhaar application form filed prior to the 1st day of October, 2024, shall intimate his Aadhaar number to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the said authorities.”

Additionally, Rule 114(6) has been updated to include references to the new sub-rule (5AA), ensuring seamless integration with existing provisions.

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Background: Why This Update Was Needed

Since Aadhaar and PAN are both critical for tax compliance and identity verification, the government has consistently worked toward linking the two. Many PANs were previously issued on the basis of Aadhaar Enrolment IDs to expedite issuance. However, to complete the identity verification loop, the actual Aadhaar number now needs to be furnished.

This step aligns with the broader tax digitization and compliance initiative undertaken by the CBDT, ensuring the accuracy and authenticity of PAN-Aadhaar linkage records.

What Should You Do Next?

If you fall under this category:

1. Locate your PAN and Aadhaar number.
2. Check if your PAN was allotted using Aadhaar Enrolment ID.
3. Submit your Aadhaar number via the income tax portal or through the designated authorities well before December 31, 2025.

See IT Notification: