Amendments to Income-tax Rules for Aadhaar & PAN Linking - IncomeTax Notification 25/2025

CBDT Notification No. 25/2025: Key Amendments to Income-tax Rules for Aadhaar-PAN Linking

Introduction

The Central Board of Direct Taxes (CBDT) has issued Notification No. 25/2025 dated 3rd April 2025, introducing critical amendments to the Income-tax Rules, 1962. These changes, effective immediately upon publication in the Official Gazette, mandate stricter compliance for Aadhaar-PAN linking under Section 139AA(2A) of the Income-tax Act, 1961.

Key Highlights of the Notification

• Mandatory Aadhaar Intimation for PAN Holders
• Individuals who were allotted a Permanent Account Number (PAN) based on an Aadhaar Enrolment ID (applied before 1st October 2024) must now intimate their Aadhaar number to the:
• Principal Director General of Income-tax (Systems)
• Director General of Income-tax (Systems)
• Any authorized officer designated by these authorities.
• Amendment to Rule 114
• A new sub-rule (5AA) has been inserted in Rule 114 of the Income-tax Rules, 1962, specifying the above requirement.
• Sub-rule (6) of Rule 114 has also been amended to include references to the new sub-rule (5AA), ensuring seamless compliance integration.

Effective Date

• The rules come into force immediately upon publication in the Official Gazette.

Why This Amendment Matters

• Enhanced Compliance: Strengthens the Aadhaar-PAN linking framework to curb tax evasion and duplicate PANs.
• Clarity for Pre-October 2024 Applicants: Ensures individuals who applied for PAN using an Aadhaar Enrolment ID (but not the actual Aadhaar number) update their records.
• Streamlined KYC: Aligns with the government’s push for digital identity verification and transparency in financial transactions.

Action Points for Taxpayers

• Verify PAN-Aadhaar Linkage Status on the Income Tax e-filing portal.
• If PAN was issued based on an Aadhaar Enrolment ID, submit your Aadhaar number to the designated authorities at the earliest.
• Non-compliance may lead to PAN inactivation or other penalties under Section 139AA.

Keywords for Better Visibility

• CBDT Notification 25/2025
• Aadhaar-PAN linking rule 2025
• Income-tax amendment rules 2025
• Rule 114 sub-rule (5AA)
• PAN-Aadhaar compliance
• Section 139AA Income-tax Act
• Tax compliance updates 2025

Conclusion

The CBDT Notification No. 25/2025 reinforces the government’s commitment to financial transparency and tax compliance. Taxpayers must act promptly to avoid disruptions in PAN-related services. Stay updated with official announcements from the Income Tax Department for further clarifications.

Also read :Income Tax functionality available in Employee Login under EIS || Ministry of Finance

View/ Download CBDT Notification No.25/2025

Also read :Income tax calculator for FY 2019 - 2020

For official reference: Income Tax India Portal | Gazette Notification Archive