Aadhaar Mandatory for New PAN Card Applications from July 1: CBDT, Here’s What You Need to Know

Hyderabad: From July 1, 2025, individuals applying for a new PAN (Permanent Account Number) must mandatorily provide their Aadhaar number, according to a revised regulation by the Central Board of Direct Taxes (CBDT).

Until now, applicants could submit any government-issued ID as proof for PAN card issuance. However, with the new rule now in force, Aadhaar has become compulsory for all new PAN applications.

Existing PAN Holders Must Link Aadhaar to Avoid Penalties

The CBDT also reiterated that individuals who already possess a PAN must link it with their Aadhaar number. Failure to do so could lead to the cancellation or deactivation of the PAN.

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“Any transaction carried out using an invalid or non-linked PAN may attract penalties,” a CBDT official warned.

What This Means for Taxpayers and Financial Transactions

With this change, Aadhaar becomes the central document for both new PAN applications and the continued validity of existing PANs. This move is aimed at:

• Preventing identity fraud
• Streamlining taxpayer verification
• Strengthening compliance under the Income Tax Act

Any financial transactions conducted using an inactive or invalid PAN—such as opening a bank account, purchasing property, or filing income tax returns—can result in legal penalties and fines.

Steps to Link PAN with Aadhaar

For those who haven’t yet linked their PAN and Aadhaar, the Income Tax Department has provided multiple channels:

• Online via the Income Tax e-filing portal
• SMS service
• Designated PAN service centers

CBDT’s Push for Aadhaar-PAN Integration

This directive is part of the government’s broader strategy to ensure a unified identity verification system and reduce the number of duplicate or fraudulent PANs in circulation.