The final deadline to link Permanent Account Number or PAN with Aadhaar is June 30, 2023, which will pass us very soon. There are several consequences if an individual fails to link both these documents including PAN getting inoperative. However, there is one more thing to worry about now. The pension regulator Pension Fund Regulatory and Development Authority has also informed that the transactions in NPS accounts will be restricted if these documents are not linked.
Restrictions on NPS Accounts If PAN & Aadhaar Not Linked
On May 2, 2023, PFRDA released a circular that reads, “n continuation to our earlier advisory dated March 23, 2023, on the captioned subject, the date for linking PAN with Aadhaar has been extended till June 30, 2023, in accordance with CBDT press release dated March 28, 2023.”
“Since PAN is one of the key identification numbers and part of Know Your Customer (KYC) requirements for NPS accounts, all concerned intermediaries are required to ensure valid KYC for all the subscribers. All existing subscribers are also required to ensure the linking of their PAN with their Aadhaar number prior to June 30, 2023, for continual and smooth transactions and to avoid consequences of non-compliance with the said CBDT circular, as such NPS accounts would be considered non-KYC compliant, and there could be restrictions on NPS transactions until the PAN and Aadhaar are linked,” reads the circular further.
So, until now the deadline to link PAN with Aadhaar has been extended five times by CBDT, and most likely June 30 will be the end of it. There will be no further extensions for linking both of these documents.
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What is the Fine for Linking PAN and Aadhaar?
If a person links both these documents on or after July 1, 2022, then ₹1,000 will be charged as a fine. “The fees have now been dismantled into their individual components. Under no circumstances can the fee paid u/s 234H for late PAN-AADHAAR linkage be refunded.”
Who is Mandated by CBDT to Link PAN and Aadhaar?
As per CBDT, “Under the provisions of the Income-tax Act, 1961(the ‘Act’) every person who has been allotted a PAN as of 1st July 2017 and is eligible to obtain an Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March 2023, on payment of a prescribed fee.”
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