Starting July 1, 2025, Aadhaar authentication is now compulsory for anyone applying for a new Permanent Account Number (PAN) card in India. This significant regulatory change, announced by the Central Board of Direct Taxes (CBDT), is part of a broader push to enhance tax compliance, curb fraud, and further digitalize India’s financial systems.
Previously, individuals could apply for a PAN card using any valid government-issued ID and a birth certificate. Now, Aadhaar-based real-time authentication is mandatory for all new PAN applications. Applicants must have an active Aadhaar number, and the mobile number linked to their Aadhaar must be current to complete OTP-based verification during the PAN application process.
By linking PAN to Aadhaar, authorities can better track financial transactions and reduce the risk of individuals obtaining multiple PANs for fraudulent activities.Aadhaar’s biometric-based verification makes it nearly impossible to create fake PAN cards, a common loophole previously exploited for tax evasion and GST fraud.The change is part of India’s ongoing efforts to digitalize tax administration and ensure every PAN is uniquely tied to its rightful owner.
Existing PAN cardholders must link their PAN with Aadhaar by December 31, 2025. Failure to do so will result in the PAN becoming inoperative from January 1, 2026. Current PAN cards remain valid, but linking with Aadhaar is now essential for continued use and compliance.
The Income Tax Department is also rolling out PAN 2.0, an upgraded version of the PAN card featuring QR codes and biometric integration for enhanced security. This will further strengthen the integrity of India’s financial identification system.
