The deadline for linking PAN (Permanent Account Number) with Aadhaar (Unique Identification Number) has been extended until March 31, 2023, as per the directive from the Indian government. All taxpayers are required to link their PAN with Aadhaar to avoid any penalties or deactivation of their PAN. The linking process can be done online through the income tax department’s e-filing portal or through SMS by sending a message to the designated number.
The PFRDA has advised all POPs, CRAs, and NPS Trust to complete the PAN-Aadhaar linking by March 31, 2023, to avoid inactivation of PAN and consequences under the Income-tax Act, 1961. As PAN is an essential identification number for NPS accounts’ KYC requirements, intermediaries must ensure valid KYC for all subscribers. Existing subscribers are also advised to link their PAN with Aadhaar before the deadline to prevent non-compliance consequences and NPS transaction restrictions.
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
ADVISORY
File no.: PFRDA/16/05/112/0018/2020-REG-POP
23rd March, 2023
To,
All Point of Presence (POPs), Central Record-keeping Agencies (CRAs) and NPS Trust
Subject: Linking of PAN with Aadhaar to be done by March 31, 2023
The provisions of Income-tax Act, 1961, make it mandatory for every person who has been allotted a Permanent Account Number (PAN) to intimate his/her Aadhaar Number to the prescribed authority so that the Aadhaar and PAN can be linked. This is required to be done on or before the notified date, failing which the PAN shall become inoperative.
- As per Central Board of Direct Taxes (CBDT) circular No. 7 of 2022 dated March 30, 2022, the PAN allotted to a person shall become inoperative if it is not linked with Aadhaar by March 31, 2023 and shall be liable to all the consequences under the Income-tax Act, 1961 for not furnishing, intimating or quoting the PAN.
- Since PAN is the one of the key identification number and part of Know Your Customer (KYC) requirements for NPS accounts, all concerned intermediaries are required to ensure valid KYC for all the subscribers.
- All existing subscribers are also required to ensure linking of their PAN with Aadhaar number prior to March 31, 2023, for continual and smooth transactions and to avoid consequences of non-compliance with the said CBDT circular, as such NPS accounts would be considered non-KYC compliant, and there could be restrictions on NPS transactions until the PAN and Aadhaar are linked.
(Sumeet Kaur Kapoor)
Executive Director
Source: www.pfrda.org.in
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