State Bank of India (SBI) has urged the users to go to Income Tax e-filing portal and link PAN and Aadhaar to enjoy “seamless banking services". If an individual misses the deadline, he or she will be liable to pay a penalty not exceeding more than Rs 1,000.
If Aadhaar card and Permanent Account Number (PAN) card are not linked, you may face problems in banking services and financial transactions. Linking of Aadhaar card and PAN card was extended by the Income Tax Department Till September 30.
If PAN card and Aadhaar card are not linked before the deadline, PAN will become useless and declared “inoperative". According to Clause 41 of Section 139AA of the Income Tax Act, "The permanent account number allotted to a person shall be made inoperative after the notified date in the manner as may be provided by rules if a person fails to intimate the Aadhaar number.
The PAN Card is a 10-digit unique alphanumeric number issued by the Income Tax department. As PAN is linked to all financial transactions made by individuals, it helps the tax officials to prevent tax evasion and frauds.
The banks have started asking customers to link their PAN and Aadhaar details soon to avoid any inconvenience.
SBI mentioned on its official Twitter handle, "We advise our customers to link their PAN with Aadhaar to avoid any inconvenience and continue enjoying a seamless banking service."
SBI mentioned on Twitter, “If not linked, PAN will be rendered inoperative or inactive and cannot be quoted for conducting specified transactions."
While depositing Rs 50,000 or more in a day, then PAN is mandatory. While buying mutual funds, debentures, bonds, etc worth more than Rs 50,000, PAN card may be mandatory.
If a PAN card becomes inactive, banking services will be affected.