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PAN-Aadhar Linking: Non linked PAN cards to be inoperative after 30th September

Speed News Desk 26 September 2019, 16:04 IST

PAN-Aadhar Linking: Non linked PAN cards to be inoperative after 30th September

The PAN number fundamentally aids the tax department to recognize the person or company in a dealing. At present, under section 139AA (2), PAN number given to an individual will be regarded as invalid in case the individual fails to link it to the Aadhaar numbers.

Furthermore, if an individual fails to set forth the Aadhaar number and link Pan with Aadhaar, the PAN card will be inoperative. Inoperative here means that an individual or firm will be unable to use the PAN card for financial transactions.

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However, the government is yet to explain the meaning of inoperative. Also the government has not elucidated if the inoperative PAN card will be licit after they are linked to the Aadhar card after the deadline day.

The deadline to link PAN with Aadhar by 30th September was made known by te Central Board of Direct Tax on 31st March 2019. The 2019 budget put forth by the finance minister Nirmala Sitharaman, altered the PAN-Aadhar linking regulations.

The Finance Bill states, "It is proposed to amend the said proviso so as provide that if a person fails to intimate the Aadhaar number, the permanent account number allotted to such person shall be made inoperative after the notified date in the manner as may be provided by rules. This amendment will take effect from 1st September 2019."

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As per the experts, there is no certainty on what will be the consequence if the PAN card is not linked to the Aadhar within the demended time.

If the PAN card becomes inoperative, you will not be able to handle any transactions where mentioning PAN number is obligatory.

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