Failure to link your PAN-Aadhaar card within the specified timeframe results in the deactivation of your PAN card, which creates obstacles in conducting financial transactions. The government has implemented 15 restrictions on individuals who have not completed the PAN-Aadhaar linkage. These limitations affect a range of money-related activities that you will be unable to perform.
To simplify the retrieval and comparison of taxpayer details, encompassing investments, loans, and business operations, the government implemented the Permanent Account Number (PAN). Its purpose is to combat tax evasion effectively. Experts emphasize the significance of connecting PAN with Aadhaar for numerous financial transactions. Failing to link your PAN with Aadhaar restricts you from engaging in activities like cash transactions, stock trading, and obtaining bank loans.
15 Transactions That Will Be Affected If Your PAN Card Is Inactive
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The inability to open an account in any type of bank, ranging from cooperative banks to private banks.
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The incapacity to create credit and debit cards.
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The impossibility of opening a demat account for investments in the stock market.
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The requirement to make a one-time payment of Rs. 50,000 for foreign travel.
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The restriction on making payments exceeding Rs. 50,000 in a single transaction.
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The limitation on investing more than Rs. 50,000 in mutual funds.
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The inability to make payments exceeding Rs. 50,000 to any organization.
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The prohibition on making payments of over Rs. 50,000 for purchasing bonds from the Reserve Bank of India.
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The limitation on investing more than Rs. 5 lakh annually in fixed deposits or any bank scheme.
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The restriction on paying more than Rs. 50,000 for bank drafts, pay orders, or checks.
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The prohibition on making payments exceeding Rs. 50,000 during a financial year as a premium to a life insurance company.
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The restriction on share transactions above Rs. 1 lakh.
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The tax deduction on payments made using an inactive PAN.
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The restriction on the sale or purchase of a vehicle, excluding motor vehicles or two-wheelers.
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The imposition of higher taxes on the purchase and sale of goods above Rs. 2 lakhs.
Linking your PAN with Aadhaar is essential for smooth financial transactions and adherence to government regulations.
