Financial Deadlines Approaching: Complete NPS, ITR, and PAN-Aadhaar Tasks Before 31st December

As 2025 draws to a close, several critical financial deadlines are fast approaching. Key tasks include filing delayed income tax returns (ITR), linking PAN with Aadhaar, and taking action on National Pension System (NPS) investments. Missing these deadlines could lead to penalties, loss of benefits, and complications in financial transactions.

1. NPS Alert: Scheme A to Merge

Many NPS investors forget to manage their accounts, prompting the Pension Fund Regulatory and Development Authority (PFRDA) to issue a notice. Scheme A, which had a small corpus and limited investment options including REITs, InvITs, AIFs, and structured debt instruments, will now be merged into Scheme C (Corporate Debt) and Scheme E (Equity). This consolidation aims to offer higher returns with lower risk.

Investors must act before 25th December 2025 to manage their portfolio, otherwise funds will automatically shift to the new schemes without any option for modification.

2. ITR Filing: 31st December is the Last Chance

For the Assessment Year 2025-26 (FY 2024-25), 31st December is the final window to file or revise delayed tax returns. Missing this deadline will lead to late fees, interest on taxes, and loss of carry-forward benefits for capital losses or business losses.

After this date, taxpayers can only file ITR-U (Updated Return) within 48 months of the assessment year, but old losses cannot be claimed and additional penalties may apply. Filing before 31st December ensures penalty-free compliance and maximizes financial benefits.

3. PAN-Aadhaar Linking: Critical Deadline

The PAN-Aadhaar linking deadline for certain PAN holders is also 31st December 2025. This applies specifically to PAN cards issued using Aadhaar Enrolment ID instead of the Aadhaar number. Failure to link will render your PAN inactive, affecting your ability to:

• File income tax returns
• Avoid higher TDS on income
• Complete investment KYC processes
• Open fixed deposits or other banking services

Why Action Now is Important

With the end of the year approaching, taking timely action on NPS, ITR, and PAN-Aadhaar linking ensures compliance, avoids penalties, and protects your financial rights. Delaying these tasks could create serious challenges in the new financial year.