Last Chance To Fix Your NPS, PAN And ITR Issues Before Dec. 31: Step-By-Step Guide To Meet Key Deadlines

As December draws to a close, it is advisable to review your financial obligations and complete the pending tasks for 2025. A few important deadlines are approaching fast, which include the ‘NPS Scheme A’ exit window, which closes on Dec. 25, and the Dec. 31 deadline to submit or revise Income Tax Return (ITR) for FY 2024-25 (Assessment Year 2025-26).

Also, the Aadhaar–PAN linking should be completed by the end of this month. However, this applies to a select group of Aadhaar cardholders.  

Missing any of these deadlines could lead to penalties and other financial complications.   

Pension Fund Regulatory and Development Authority (PFRDA) is merging NPS Scheme A (Tier I, Active Choice) with Schemes C and E to improve liquidity, diversification and risk-adjusted returns. Scheme A, which invests in alternatives like REITs, InvITs, AIFs and structured debt, has a small, concentrated corpus.

If investors don’t opt to switch by Dec. 25, their allocation will be moved automatically, as per the pension regulator PFRDA. Until then, investors can switch schemes for free via CRA/NPS or Protean/NSDL account. Based on the risk profile, investors can pick the alternative scheme to suit their financial needs.

1.    Log into your CRA/NPS account (or use the Protean/NSDL portals)

2.    Click “Transaction - Switch Scheme Preference”

3.    If you see Scheme A, consider switching to Scheme C (corporate debt), E (equity), or G (government securities) based on your risk appetite.

The final date to file belated or revised Income Tax Returns for FY 2024–25 is Dec. 31. Taxpayers should note that missing this deadline can lead to late fees. Failure to file the updated or revised ITR by Dec. 31 may also result in the forfeiture of the benefits of carrying forward the capital or business losses.  

After Dec. 31, returns can still be filed under ITR-U, but certain losses can’t be claimed and penalties may apply. Hence, investors should check Form 26AS/AIS, review capital gains and file their taxes accordingly. They must also complete e-verification to avoid penalties and to secure tax benefits.

This Dec. 31 deadline applies only to PAN holders who obtained their PAN using an Aadhaar Enrolment ID before Oct. 1, 2024, and not the Aadhaar number itself. According to the Central Board of Direct Taxes (CBDT), such individuals must intimate their Aadhaar number by the end of 2025.  

Missing the deadline can make your PAN inoperative from Jan. 1, 2026. This means you won’t be able to file tax returns, higher TDS may apply, income tax refunds could be delayed, and KYC for investments or fixed deposits may be rejected due to the inoperative PAN.

1. Visit the Income Tax e-Filing portal and click Link Aadhaar under Quick Links.

2. Enter your PAN and Aadhaar details, then choose e-Pay Tax to pay the mandatory fee.

3. Re-enter PAN, verify via OTP, select Income Tax, choose the assessment year, and mark Other Receipts (500).

4. Complete payment using net banking, debit card, or UPI. Wait a few days for confirmation.

5. Return to Link Aadhaar, enter PAN and Aadhaar, and validate payment details.

6. Enter Aadhaar details, confirm validation, and submit the OTP to complete the process.