New Delhi. Permanent Account Number (PAN) should be linked with Aadhar card by the end of this month. PAN cards that are not linked with Aadhaar will become useless after June 30 and will be declared “inactive”. As per section 41 of section 139AA of the Income Tax Act, “If a person fails to furnish the Aadhaar number, the Permanent Account Number allotted to such person shall be deactivated after this date.”
Permanent Account Number i.e. PAN Card is a 10 digit unique alphanumeric number issued by the Income Tax Department. PAN card helps the Income Tax authorities to prevent tax evasion and fraud as it is linked to all financial transactions carried out by an individual. To avoid any inconvenience from next month, banks have asked customers to link their PAN and Aadhaar details by the end of this month.
“We recommend our customers to link their PAN with Aadhaar to avoid any inconvenience and enjoy uninterrupted banking service,” State Bank of India (SBI) wrote on Twitter. “If not linked, the PAN will become inoperative or useless and cannot be used to perform specified transactions,” SBI wrote.
Having a PAN card is a must when opening a bank account, applying for credit and debit cards, opening a demat account, among other things. PAN is mandatory even if a person deposits more than Rs 50,000 in cash in a day in a bank. PAN details are required to be provided while buying mutual funds, debentures, bonds etc. of value above Rs 50,000. Many other banking services will be affected if the PAN card is deactivated.
SBI has urged customers to visit the income tax e-filing portal and link PAN and Aadhaar to use “seamless banking services”. HDFC Bank is also informing its customers about the deadline for linking Aadhaar with PAN through SMS.
In the Union Budget 2021, the central government has added a new section 234H in the Income Tax Act, where a person will have to pay a penalty for not linking PAN and Aadhaar after the expiry of the deadline. So if a person misses the deadline, he will have to pay a fine of not more than Rs 1,000.