The deadline for linking your permanent account number to your Aadhaar number is approaching. Under the new income tax rules, it is mandatory to link PAN to your Aadhaar number before June 30, 2021. PAN cards that are not linked to Aadhaar would become useless and declared “inoperative” and KYC status will also become invalid.
According to Section 41 of Section 139AA of the Income Tax Act, “If a person fails to provide the Aadhaar number, the permanent account number assigned to that person will be rendered inoperative after the date notified. in the manner prescribed by the rules. ”
The Permanent Account Number (PAN) is a unique ten-digit alphanumeric number that helps tax officials prevent tax evasion and fraud. It is linked to all financial transactions made by an individual.
Now banks have started asking customers to link their PAN and Aadhaar details to avoid inconvenience, by the end of this month.
“We advise our clients to link their PAN to Aadhaar to avoid any inconvenience and continue to enjoy transparent banking service,” SBI said in a tweet.
SBI said, “If not bound, PAN will be rendered inoperative or inactive and cannot be cited to perform specified transactions. ”
The PAN card is required for many things, including opening a bank account, applying for a credit and debit card, setting up a demat account, and buying or selling a property. In addition, CBDT has mandated the insurance policy holder to provide the details of the PAN while making any premium payments to insurance companies for amounts exceeding Rs 50,000 per year.
A customer must provide PAN details while making a payment over Rs 50,000 in cash in a day for purchasing bank drafts or payment orders or bank checks from a banking company or a cooperative bank. If your PAN becomes invalid due to unrelatedness to Aadhaar, you will not be able to invest in mutual funds. Most of your investing activities will be stopped. SBI required users to access the income tax e-filing portal and link PAN and Aadhaar to enjoy “transparent banking services.” HDFC Bank constantly informs its customers about the PAN Aadhaar link deadline by SMS.