Aadhaar-PAN Not Linked? List of Transactions You Will Not Be Able To Do From July 1

 

Importance of PAN

PAN must be quoted on all income tax returns and challans for any payments owed to the Income Tax Department as of January 1, 2005. It is also mandatory to specify the PAN in all documents relating to the below-given transactions:

• Purchase or sale of a motor vehicle or vehicle other than a two-wheeler vehicle.
• Instead of a time deposit and a Basic Savings Bank Deposit Account, opening an account with a banking firm or a cooperative bank.
• Applying for the issuance of a credit or debit card.
• Opening a Demat account with a depository, participant, custodian of securities, or any other individual with SEBI.
• PAN is necessary for cash payments of more than Rs. 50,000 to a hotel or restaurant at one time, as well as cash payments of more than Rs. 50,000 in relation to travel to any foreign nation or payment for the purchase of any foreign currency at one time.
• Payment of more than Rs. 50,000 to a Mutual Fund house for the acquisition of its units.
• Payment of more than Rs. 50,000 to a firm or institution for the acquisition of debentures or bonds.
• Payment of more than Rs. 50,000 to the Reserve Bank of India for the purchase of bonds.
• Cash deposits of more than Rs. 50,000 made in a single day with a banking company or a co-operative bank.
• Payment in cash for purchases of bank drafts, pay orders, or banker's cheques from a banking company or a co-operative bank above Rs. 50,000 on any one day.
• A time deposit of more than Rs. 50,000 or more than Rs. 5 lakh with a banking institution or a co-operative bank, a Post Office, or a non-banking financial company within a fiscal year.
• Payment in cash or by bank draft, pay order, or banker's cheque of more than Rs. 50,000 to a banking company in a fiscal year for one or more pre-paid payment methods, as defined in the Reserve Bank of India's policy guidelines for the disbursement and implementation of pre-paid payment instruments issued under Section 18 of the Payment and Settlement Systems Act, 2007.
• Payment to an insurer of an amount of more than Rs. 50,000 in a fiscal year as a life insurance premium.
• A contract for the acquisition or sale of securities (other than shares) in an amount higher than Rs. 1 lakh per transaction.
• Any person who sells or buy shares of a firm that is not listed on a recognised stock exchange for more than Rs. 1 lakh per transaction.
• Any immovable property sold or purchased for more than Rs. 10 lakh or valued by a stamp valuation authority as defined in Section 50C of the Act for more than Rs. 10 lakh.
• Sale or acquisition of goods or services or any type other than those described above for more than Rs. 2 lakh per transaction.
• An individual who does not have a PAN and undertakes in any of the aforementioned transactions may file a declaration in Form No.60.
• Note: Individuals who do not link their PAN with Aadhaar will have their Personal Account Number invalidated, according to the CBDT. With an inoperative PAN, you will be unable to complete the transactions stated above. As a result, it is advised that you link your Aadhaar with your PAN before June 30, 2021.

How to link PAN with Aadhaar on the new income portal?

To allow the income tax department to have a record of your financial activities, it is mandated to link PAN with Aadhaar. Follow the procedures below to link your PAN with Aadhaar on the new income tax portal:

• Visit incometax.gov.in and click on ‘Our Services'
• Now enter your PAN and Aadhaar number respectively.
• Enter your mobile number and accept the disclaimer stating that ‘I agree to validate my Aadhaar details'.
• Now click on ‘Link Aadhaar' and upon successful linking, you will get a confirmation message on your given mobile number.

How to link PAN with Aadhaar through SMS?

To link your PAN with Aadhaar via SMS, please follow the steps below:

• Type UIDPAN 12 Digit Aadhaar Number and 10 Digit PAN and send it to either 567678 or 56161 from your registered mobile number.
• You will be able to link PAN with Aadhaar only when the details of both documents are the same.
• If there are flaws in your name or date of birth, your PAN will not be linked to Aadhaar.
• You can make modifications by visiting your nearest Aadhaar Enrollment Centre or by visiting the NSDL PAN website.