PAN Inoperative After 31st December 2025?

PAN Inoperative After 31st December 2025? 

By CA Anant Lall Gupta

Here's What You Need to Know

The Confusion:

Panic has gripped many taxpayers with widespread misinformation about PAN cancellation. People are rushing to tax offices, questioning whether they need to apply for new PANs, and fearing loss of their financial identity.

The Facts:

Let me clear this up: Your PAN is NOT cancelled—it becomes inoperative. This is a temporary status, not a permanent deletion. You absolutely do NOT need to apply for a new PAN card.

Problems with Inoperative PAN:

• Cannot file Income Tax Returns

• Tax refunds will be blocked

• High-value financial transactions get rejected

• TDS deducted at higher rates (20% instead of applicable slab rates)

The Solution:

Fixing this is straightforward:

Pay ₹1,000 late fee/penalty

Submit PAN-Aadhaar linkage request online at incometax.gov.in

Wait 48 hours for system processing

Your PAN automatically becomes operative again.

Conclusion:

Don't panic or waste time applying for new PANs. Simply link your existing PAN with Aadhaar, pay the penalty, and resume normal operations within 48 hours.

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