Pan – Aadhaar Linking Date Extended

The government has been at it for quite some time now. Pan – Aadhar linking was announced a few years ago, and then the pandemic happened; due to which the deadlines were extended thrice already.

It’s imperative that your Income Tax number (PAN) and your identity be linked. The deadline has been extended, yet again, by 3 months to September 30th, 2021 from the current deadline of June 30, 2021. It seems a lot of us are yet to have them linked, and this time the government means business if we don’t.

If not linked by September 30 then

• Pan will be inoperative
• Up to Rs.1000 penalty if linked after the deadline

For those who want to check if the cards are linked, below are the steps,

• Step 1 – Visit the new income tax portal, www.incometax.gov.in.
• Step 2 – On the home page, scroll down to ‘Our services’ and click on ‘Link Aadhaar – Know Your Aadhaar-PAN Link Status’
• Step 3 – Enter your PAN and Aadhaar numbers.
• Step 4 – Click on ‘View Link Aadhaar Status,’ and it will show if you have linked these two documents.

For those who want to link the cards, the steps are simple, here are they,

• Step 1 – Visit the new income tax portal
• Step 2 – On the home page, scroll down to ‘Our services’ and click on ‘Link Aadhaar.’ This will be the second option from the left.
• Step 3 – Key in your PAN, Aadhaar, name as per Aadhaar and mobile number
• Step 4 – If your Aadhaar has only your year of birth, there is a small box to tick at the bottom of the page.
• Step 5 – Also click on another box that says “I agree to validate my Aadhaar details”
• Step 6 – Click ‘Link Aadhaar’, and the process will be complete.

If you do not possess the Aadhaar number, the Enrolment ID of the Aadhaar form can be quoted to complete this process.

Impact On Your Investments If Not Linked

This time it will be pretty bad, since PAN will be inoperative. Below are some effects of not linking your cards,

• PAN inoperative, so KYC status in Mutual Funds get invalid
• You will not be able to access your investments in Mutual Funds
• Cannot make fresh investments or redeem your Mutual Fund investments
• Ongoing SIPs in Mutual Fund schemes will be stopped
• Cannot access investments in NPS, stocks, or any other investments which uses PAN
• Banks can also prohibit you from any transactions and freeze your accounts

Recently, State Bank Of India (SBI), the country’s largest bank, issued a subtle warning to its customers that failure to link the cards will result in, “inconvenience in enjoying seamless banking service.” Other banks are likely to follow suit.

NRIs Linking PAN With Aadhaar – Is It Mandatory?

As per the government’s rules, NRIs must have a PAN card to be able to invest in Indian Mutual Funds.

It is, however, not mandatory for NRIs to have an Aadhaar card. If the Income Tax department knows that you are an NRI, linking the cards is not needed.

Word of Caution: If you are an NRI and your income-tax returns do not classify you as an NRI, your PAN card will become inoperative. It is better to update your NRI status with the Income Tax department immediately.