The Central Board of Direct Taxes (CBDT) has issued a notification mandating the submission of Aadhaar number for all new PAN card applications starting July 1, 2025. The move is part of the government’s ongoing efforts to streamline tax compliance and prevent the misuse of duplicate identities.
According to the notification issued under the Income-tax (Fifth Amendment) Rules, 2024, individuals applying for a new Permanent Account Number (PAN) will be required to furnish a valid Aadhaar number at the time of application. Without Aadhaar, no PAN card will be allotted from the mentioned date.
The CBDT stated, “It is hereby notified that with effect from July 1, 2025, furnishing of Aadhaar number shall be mandatory for every individual applying for the allotment of PAN, except in cases where exemptions have been provided.”
This directive will apply to all residents of India, with certain exemptions for Non-Resident Indians (NRIs), foreign citizens, and individuals from the states of Assam, Meghalaya, and Jammu & Kashmir, as per existing provisions under the Aadhaar Act and Income Tax Rules.
The PAN card, an essential document for filing income tax returns, conducting high-value transactions, and opening bank accounts, will now be closely linked with the Aadhaar database to curb identity fraud and ensure transparency in financial records.
Tax professionals have welcomed the move, stating that the mandatory Aadhaar requirement will reduce duplication and make KYC (Know Your Customer) processes more robust. However, some civil liberties groups have expressed concerns over privacy and data security, calling for stronger safeguards around biometric data usage.
Individuals planning to apply for a PAN card after July 1 have been advised to ensure their Aadhaar details are up to date. Any mismatch in personal information, such as name or date of birth between the two documents, may result in application rejections.
The government had earlier made Aadhaar-PAN linking mandatory for existing PAN holders, with several deadlines extended over the past few years. With this new rule, the integration is now being enforced right at the issuance stage.
The CBDT has clarified that online and offline PAN application portals will be updated accordingly, and Aadhaar authentication will become a part of the application workflow.
