Bank customers ALERT! Link PAN-Aadhaar before deadline or face problems in banking services

Bank customers ALERT! Link PAN-Aadhaar before deadline or face problems in banking services

The deadline to link your Permanent Account Number with your Aadhaar number is nearing. Under the new Income Tax Rules, it is mandatory to link PAN with your Aadhaar number before June 30, 2021. The PAN cards which are not linked to Aadhaar would become useless and declared “inoperative” and the KYC status will also become invalid.

According to Clause 41 of Section 139AA of the Income Tax Act, “If a person fails to intimate the Aadhaar number, the permanent account number allotted to such person shall be made inoperative after the notified date in the manner as may be provided by rules.”

Permanent Account Number (PAN) is a ten-digit unique alphanumeric number that helps tax officials to prevent tax evasion and frauds. 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 any inconvenience, by the end of this month.

“We advise our customers to link their PAN with Aadhaar to avoid any inconvenience and continue enjoying a seamless banking service,” SBI said in a tweet.

SBI stated, “If not linked, PAN will be rendered inoperative or inactive and cannot be quoted for conducting specified transactions.”

PAN Card is required for so many things including opening a bank account, applying for credit and debit card, to start a demat account and to purchase or sell a property. Also, CBDT has mandated insurance policyholder to furnish PAN details while making any premium payment to insurance companies for amounts exceeding Rs 50,000 in a year.

A customer must provide PAN details while making a payment of over Rs 50,000 in cash during any one day for the purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank. If your PAN becomes invalid because of non-linkage with Aadhaar, you will not be able to invest in mutual funds. Most of your investment-related activities will be stopped.SBI has requested users to go to Income Tax e-filing portal and link PAN and Aadhaar to enjoy “seamless banking services”. HDFC Bank is continuously informing their customers about PAN Aadhaar linking deadline via SMS.

Source:-dnaindia

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