PAN Card 2025 Update: Aadhaar Mandatory for New PAN Applications Starting July 1
The Central Board of Direct Taxes (CBDT) has announced that starting July 1, 2025, Aadhaar authentication will become mandatory for individuals applying for a new Permanent Account Number (PAN) card.
New Delhi: The Central Board of Direct Taxes (CBDT) has announced that starting July 1, 2025, Aadhaar authentication will become mandatory for individuals applying for a new Permanent Account Number (PAN) card. This change is part of the government’s ongoing efforts to enhance transparency, digital governance, and curb tax evasion.
Table of Contents
Current PAN Application Process to Be Replaced
At present, individuals can apply for a PAN card using alternative identity proofs such as their name, date of birth certificates, or other documents. However, from July 1, 2025, Aadhaar will become the only valid document for PAN verification, making it essential for all new applicants.
Also Read: Telangana Government Puts Engineering, Pharmacy & Architecture Fee Hike on Hold for 2025–26
Aadhaar-PAN Linking Deadline for Existing Cardholders
In addition to the new rules for fresh applicants, the Income Tax Department has reiterated the importance of linking existing PAN cards with Aadhaar. The deadline to link PAN with Aadhaar without a penalty is December 31, 2025. Failing to do so will result in the deactivation of the PAN card, rendering it invalid for all financial transactions.
Why Aadhaar-Based Verification?
This move is aimed at preventing fraud and misuse of PAN cards. Officials noted that in recent audits, several individuals were found using multiple PAN cards or fraudulently utilizing others’ PANs for tax evasion. The mandatory use of Aadhaar for verification is expected to eliminate duplicate identities and streamline tax compliance.
PAN 2.0: The Next-Gen PAN-TAN Management System
The upcoming Aadhaar-based PAN rules are part of a broader project titled PAN 2.0. This initiative by the Income Tax Department aims to upgrade the digital infrastructure for PAN and TAN (Tax Deduction and Collection Account Number) services. PAN 2.0 will offer enhanced taxpayer services, faster processing, and real-time verifications via an integrated digital platform.
Key Highlights of New PAN Card Rules 2025:
- Aadhaar mandatory for all new PAN card applications from July 1, 2025
- PAN-Aadhaar linking deadline for existing users: December 31, 2025
- Non-linked PANs will become non-functional after the deadline
- Part of the PAN 2.0 digital reform initiative
- Aimed at reducing tax fraud, enhancing transparency, and improving user experience
