PAN-Aadhaar linking: The government has announced the mandatory requirement of linking the PAN card with Aadhaar. The deadline for this was set to be June 30, 2023. However, those who have failed to link these two documents have had their PAN cards deactivated since July 1, 2023. These individuals will now be unable to perform these 12 types of transactions. It became obligatory to link Aadhaar and PAN cards under Section 139AA of the Income Tax Act of 1961. Generally, it is necessary for taxpayers to link their PAN cards to gather and match information regarding their assets, loans, and other business activities.
Section 114B of the Income Tax Act clearly states that for certain transactions in the country, it is necessary to provide a PAN number. In such cases, if your PAN card is deactivated, you may face difficulties in carrying out these 12 Activities.
- To open a bank account, you will need to provide details from your PAN card. However, for opening a ‘Basic Savings Bank Deposit Account,’ you may be exempted from the requirement of a PAN card.
- To deposit an amount of 50,000 rupees or more into a bank account, you will be required to provide a PAN card. Alternatively, you can choose digital transactions as an option.
- In the stock market, it is not possible to engage in any kind of transaction without a demat account. To open a demat account, an individual desiring to do so will need to provide details from their PAN card.
- When applying for a debit or credit card, you will still be required to provide your PAN card number.
- If the premium for an insurance policy is equal to or exceeds 50,000 rupees, then you will be required to provide your PAN card number.
- To make a single payment of 50,000 rupees or more at a hotel or restaurant, it is necessary to provide PAN details for record-keeping purposes.
- To make foreign currency exchanges or for foreign travel expenses exceeding 50,000 rupees at a time, you will be required to provide your PAN card number.
- For mutual fund payments exceeding 50,000 rupees, it is necessary to provide your PAN details.
- To purchase company debentures or bonds by paying an amount of 50,000 rupees or more, you will be required to provide PAN card details.
- To make a payment of 50,000 rupees or more for purchasing bonds issued by the Reserve Bank of India (RBI), you will need to provide your PAN card details.
- To purchase demand drafts, pay orders, or banker’s cheques from a bank for an amount of 50,000 rupees or more within a day, you will be required to provide PAN card details.
- During a financial year, for fixed deposits in banks exceeding 50,000 rupees up to a total of 5 lakh rupees, you will be required to provide PAN card details.
The Indian government has made it mandatory to link PAN cards with Aadhaar cards, and failing to do so has resulted in PAN card deactivation. This deactivation restricts individuals from carrying out 12 types of transactions.