Aadhaar-PAN link: The income tax department has given 30th June 2021 as deadline for PAN-Aadhaar link. Failing to this, one’s PAN card will become inoperative. According to tax and investment experts, an inoperative PAN card means not having a PAN card. In such case, all investments that requires PAN like bank account, mutual funds, stock market and other investments will get hit very badly as one won’t be allowed further transaction due to the incomplete KYC (Know Your Customer).
Advising all investors to check their PAN-Aadhaar link status Pankaj Mathpal, Founder & CEO at Optima Money Managers said, “All investors are advised to check their Aadhaar-PAN link status and if it is not seeded, then one must do it before the give deadline of 30th June 2021. Failing to this will lead to inoperative PAN card means incomplete KYC. One’s incomplete KYC won’t allow further transaction in banks, mutual funds and any other investments. In fact, in the case of non-PAN card seeding with the bank account, the bank will charge double TDS (Tax Deduction at Source), which is 10 per cent in case of PAN seeded bank account.”
On how incomplete KYC will hit an investor’s mutual fund, equity and other investments Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, “In case of incomplete KYC, one can neither invest nor withdraw money from one’s investments in mutual funds, equity or any other option where PAN is must for KYC.” Jhaveri said that due to the inoperative PAN card, it would become difficult to get one’s statement as NSDL and CDSL won’t be able to store one’s investment records.”
Recommending Aadhaar-PAN linking within the given deadline SEBI registered tax and investment expert Jitendra Solanki said, “In case of incomplete KYC, an investor’s monthly SIP may also get discontinued as the investor is neither allowed to invest nor withdraw money from one’s mutual fund investments in the case of incomplete KYC.”
Solanki said that due to inoperative PAN card, one can be fined up to ₹10,000 in case of ₹50,000 or above banking transaction where PAN seeding with one’s bank account is must.
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