“Missed the PAN-Aadhaar Linking Deadline? Here are Ten Money Losses You May Face”
The deadline for linking PAN and Aadhaar expired on June 30, 2023. If you haven’t linked your PAN card with Aadhaar by now, your PAN card has become inoperative starting from July 1, 2023.
PAN is mandatory for various financial transactions, including opening bank accounts, Demat accounts, and cash deposits. Failure to link PAN and Aadhaar may impact large deposits, withdrawals, loan applications, and obtaining credit cards. It is also crucial for opening and operating a Demat account, which is necessary for securities trading such as stocks and shares, as stated by Kumar Binit, Founder & CEO at FinMapp.
The income tax department in India has listed transactions that cannot be conducted with an inoperative PAN. Here are the top ten financial setbacks you may face if your PAN card becomes inoperative:
- Income tax refunds will not be processed: Taxpayers can file income tax returns but won’t be able to claim refunds using the inoperative PAN, as per CBDT.
- TDS, TCS: TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) will be deducted/collected at higher rates.
- Mutual funds will be impacted: Opening a demat account with a depository, participant, custodian of securities, or any other person regulated by SEBI will be affected. Investors may be unable to carry out mutual fund investments exceeding ₹50,000. New mutual fund investments are also impossible without linking PAN with Aadhaar, as confirmed by Computer Age Management Services (CAMS).
- Equity investments will be impacted: The sale or purchase of shares of an unlisted company for exceeding ₹1 lakh per transaction will be affected.
- Sale or purchase of motor vehicles (excluding two-wheeled vehicles).
- Opening an account (excluding time-deposit and Basic Savings Bank Deposit Account) with a banking company or cooperative bank.
- Debit and credit cards: Making an application for the issue of a credit or debit card will be impacted.
- Cash deposits and payments: Deposits of cash exceeding ₹50,000 in a single day with a banking company or cooperative bank, and payment in cash exceeding ₹50,000 in a single day for purchasing bank drafts, pay orders or banker’s cheques from a banking company or cooperative bank will be affected.
- Insurance policies: Payment of life insurance premium aggregating to more than ₹50,000 in a financial year to an insurer.
- Sale or purchase of immovable property: Sale or purchase of any immovable property for an amount exceeding ₹10 lakhs or valued by a stamp valuation authority (as referred to in section 50C of the Act) at an amount exceeding ten lakh rupees.
Be aware of these financial setbacks to avoid potential losses resulting from non-linking PAN and Aadhaar.
