The government created the Permanent Account Number (PAN) to enable easy retrieval of information and to enable matching of information relating to investments, loans, and other business activities of taxpayers collected through various sources, both internal and external, for detecting and combating tax evasion and expanding the tax base.
As per section 139AA of the Income Tax Act 1961, it was mandatory to link your Aadhaar number with Permanent Account Number (PAN) by 30 June 2023. As per the CBDT Guideline, if it is not linked, PAN will be inoperative from July 1, 2023.
According to Dr. Suresh Surana, founder RSM India – a business consulting firm: Rule 114B of the Income Tax Rules, provides for transactions wherein every person is required to quote their Permanent Account Number (PAN) and the said list provides for the 18 transactions which are mentioned hereinbelow. Considering that the coverage of transactions where PAN is required to be quoted is fairly wide, there will be many instances where such defaulting persons would face challenges in undertaking the specified transaction, if their PAN becomes inoperative. For instance, some of the routine banking transactions like depositing of more than Rs. 50,000 in a bank account or payment of insurance premium exceeding Rs. 50,000 or even application for credit / debit card, etc. Also, it is notable that many senior citizens who fail to link the PAN with Aadhar would be impacted as currently the exemption provided is only to very senior citizens of the age of 80 years or more at any time during the year. The other category of persons who have been exempted from linkage of PAN and Aadhar include residents of the state of Assam, Jammu and Kashmir, Meghalaya, non-residents as per the Income-tax Act and Persons who are not citizens of India.
Many investors are facing issues and are not able to carry out financial transactions such as MF investments or stock trading. Computer Age Management Services (CAMS), in tweet stated: “Yes, as per the Income Tax rules, it is mandatory to link your Aadhaar with PAN on or before 30-Jun-2023. From 01-Jul-2023, all financial and service requests will not be processed for a PAN that is not linked with Aadhaar.”
Paytym replied to a customer who was not able to buy or sell stocks, “ as verified, the aadhar pan status is not linked as per NSE data. We are working on your issue and will get back with an update at the earliest over the Ticket ID 7013176847. Thank you.”…..Read More
Source By: economictimes
