PAN-Aadhaar linking deadline expired on 30 June 2023. For those who have still not linked their PAN with Aadhaar by now, it means that their PAN card has become inoperative effective 1 July 2023.
PAN is mandatory for a host of financial transactions including the opening of banks, demat accounts, and depositing of cash in a bank account.
“Non-linking of PAN and Aadhaar may affect making large deposits and withdrawals or getting loans/credit cards. Linking PAN and Aadhaar is essential for opening or operating a Demat account, which is necessary for trading in securities such as stocks and shares,” said Kumar Binit, Founder & CEO at FinMapp
According to India’s income tax department, here are all the transactions that cannot be conducted with an inoperative PAN. Let’s know the ten money losses that you may face if your PAN card becomes inoperative.
1)Refund of income tax will not be processed
According to CBDT, Taxpayers can file income tax returns, but will not be able to claim refunds using the inoperative PAN
2) TDS, TCS
TDS and TCS shall be deducted/ collected at higher rates.
Opening of a demat account with a depository, participant, custodian of securities, or any other person with SEBI
Many investors are not able to carry out MF investments exceeding ₹50,000. According to Computer Age Management Services (CAMS), new investments in mutual funds are not possible where PAN is not linked with Aadhaar.
Payment of an amount exceeding Rs. 50,000 to a Mutual Fund for the purchase of its units.
Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange for an amount exceeding ₹1 lakh per transaction.
5) Sale or purchase of a motor vehicle or vehicle other than two-wheeled vehicles.
6) Opening an account [other than a time-deposit referred at point No. 12 and a Basic Savings Bank Deposit Account] with a banking company or a cooperative bank
7) Debit, credit cards
Making an application for the issue of a credit or debit card.
8) Cash deposit and payment
Deposits of cash exceeding Rs. 50,000 during any one day with a banking company or a cooperative bank. Payment in cash for an amount exceeding Rs. 50,000 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.
9) Insurance policies
Payment of an amount aggregating to more than Rs. 50,000 in a financial year as life insurance premium to an insurer
10) Sale or purchase of immovable property
Sale or purchase of any immovable property for an amount exceeding ₹10 lakh or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees.
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Updated: 06 Jul 2023, 01:20 PM IST