The deadline for linking PAN and Aadhaar cards has passed, making it crucial for individuals to ensure compliance with the Income Tax Act.
Failure to link PAN with Aadhaar by the specified deadline renders the PAN card invalid, leading to significant limitations on financial transactions and services. Let’s explore the repercussions of holding an invalid PAN card and the tasks you’ll be unable to perform.
Implications of an Invalid PAN Card
As per Section 139AA of the Income Tax Act 1961, failing to link Aadhaar with PAN by the deadline results in the PAN card becoming invalid from the subsequent day.
This invalidation imposes severe restrictions on various financial transactions and services, hindering individuals from conducting essential activities.
Restrictions on Financial Transactions
An invalid PAN card prohibits individuals from engaging in financial transactions exceeding Rs 50,000. Moreover, opening a bank account, obtaining debit or credit cards, and applying for loans become inaccessible without a valid PAN-Aadhaar linkage.
Investors are also barred from participating in stock trading activities, leading to further limitations on financial engagement.
Impact on SBI Card Holders
SBI Card has issued notifications regarding the repercussions of an inactive PAN card. Failure to link PAN with Aadhaar by the stipulated deadline renders the PAN inactive, affecting the individual’s ability to conduct certain financial transactions.
Higher tax rates may apply to permissible transactions, adding to the financial burden.
Tasks Prohibited with an Invalid PAN
According to the Income Tax Department, individuals with an inactive PAN cannot undertake financial transactions or open bank accounts.
Additionally, applying for credit or debit cards, opening demat accounts, and investing in mutual funds become unfeasible without a valid PAN-Aadhaar linkage.
