The Central Board of Direct Taxes (CBDT) has issued a fresh notification mandating that individuals who were allotted a Permanent Account Number (PAN) based on their Aadhaar Enrolment ID before October 1, 2024, must update their Aadhaar number with the Income Tax Department by December 31, 2025.
The directive, issued via Notification No. 26/2025 dated April 3, 2025, comes under the powers conferred by subsection (2A) of Section 139AA of the Income-tax Act, 1961. It requires PAN holders who received their PAN using an Aadhaar Enrolment ID (rather than an Aadhaar number) before October 1, 2024, to officially link their Aadhaar number with the Income Tax database.
The notification reads
"Every person who has been allotted a 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…on or before the 31st day of December, 2025 or such date as may be specified by the Central Board of Direct Taxes."
This move is expected to strengthen the government's ongoing efforts to weed out duplicate PANs and streamline the income tax database. Tax experts advise affected individuals to complete the linkage well before the deadline to avoid potential issues with tax filings, refunds, or financial transactions.
Failure to update Aadhaar information within the prescribed timeline may lead to PAN becoming inoperative, leading to restrictions in performing banking, investment, and tax-related activities.
The CBDT may notify a revised deadline at a later date, but as of now, December 31, 2025 remains the final date for compliance.
Official text of the Notification is as follows
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 3rd April, 2025
No. 26/2025
S.O. 1605(E).— In exercise of the powers conferred by sub-section (2A) of section 139AA of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that 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 Incometax (Systems) or Director General of Income-tax (Systems) or the person authorised by the said authorities on or before the 31st day of December, 2025 or such date as may be specified by the Central Board of Direct Taxes in this behalf.
[F. No. 370142/1/2025-TPL]
SURBENDU THAKUR, Under Secy., Tax Policy & Legislation Division
CAclubindia
