As we enter the first week of January 2026, a significant number of taxpayers across India are discovering an unpleasant surprise — their PAN status has turned “inoperative.”
Following the Central Board of Direct Taxes (CBDT) notification, the grace period for linking PAN with Aadhaar officially ended on 31 December 2025.
If you missed this deadline, your PAN is now considered inoperative, and this is not just a technical issue — it has direct financial consequences.
What Happens If Your PAN Is Inoperative?
An inoperative PAN is essentially a broken financial identity in the eyes of the Income Tax Department. You may immediately face the following issues:
· Higher TDS / TCS
Tax will be deducted at higher rates, often 20% or more, instead of normal slab rates.
· Blocked ITR Filing & Refunds
You cannot file Income Tax Returns (ITR) or receive refunds on the official portal.
· Banking & Financial Disruptions
· Difficulty opening new bank accounts
· Problems applying for credit cards or loans
· Issues with mutual funds and stock market transactions
How to Check Your PAN–Aadhaar Status (Quick Step)
Before panicking, first verify your PAN status:
🔗 Official Portal: https://www.incometax.gov.in
Steps:
- Visit the Income Tax e-Filing portal
- Go to Quick Links → Link Aadhaar Status || https://eportal.incometax.gov.in/iec/foservices/#/pre-login/link-aadhaar-status
- Enter your PAN and Aadhaar number
- View the current linking status instantly
Step-by-Step Guide to Reactivate Your PAN in 2026
If your PAN is already inoperative, don’t worry — it can be reactivated by paying a penalty and completing the linking process.
Step 1: Pay the Penalty Fee (₹1,000)
🔗 e-Pay Tax Service: https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/user-details
Steps:
- Enter your PAN and registered mobile number
- Verify using OTP
- Select Minor Head 500 – Fee for delay in linking PAN with Aadhaar
- Pay ₹1,000 via:
- Net Banking
- Debit Card
- UPI
Step 2: Submit PAN–Aadhaar Linking Request
- Wait 3–4 working days for the payment to reflect
- Visit: https://www.incometax.gov.in
- Go to Link Aadhaar
- Enter PAN & Aadhaar
- Validate details and submit
Once verified, your PAN will become operative again.
Step 3: Fix Data Mismatch (If Linking Fails)
If your linking fails due to name, DOB, or gender mismatch, update your records first:
· PAN Correction (Protean / NSDL): https://www.protean-tinpan.com
· Aadhaar Correction (UIDAI): https://myaadhaar.uidai.gov.in
You may also visit nearest Pan/Aadhaar center to get your details updated
After correction, retry the linking process.
Who Is Exempt from PAN–Aadhaar Linking Penalty?
Even in 2026, the following categories are exempt:
- Non-Resident Indians (NRIs)
- Super Senior Citizens (80 years and above)
- Residents of Assam, Meghalaya, and Jammu & Kashmir
Conclusion
An inoperative PAN can silently drain your money through higher taxes and blocked refunds. With the new tax cycle beginning, ensuring PAN–Aadhaar linkage should be your top financial priority this January.
