Inoperative PAN means a considerable impact on performing various financial transactions. Make sure that your PAN will remain operative. In order to keep it operative, you need to link it with Aadhaar card.
As per the latest CBDT circular, your PAN will become inoperative in case not linked with Aadhaar card by 31st March,2020. The guideline also clarifies that in case your link your Aadhaar with PAN after 31st March, 2020 your PAN will be operative from the date of intimation of Aadhaar Card.
It is aknown fact that the deadline for linking Aadhaar with PAN extended multiple times. However, it seems this is the last chance for linking Aadhaar with PAN. If you miss the chance and your PAN will be inoperative you will not able to perform various financial transactions.
I have identified 11 such financial transactions that you will not able to perform if your PAN goes into the inoperative state.
List of 11 financial transactions not allowed for Inoperative PAN
PAN is a mandatory requirement for individuals for carrying out several financial transactions. You need to quote your PAN card whenever quoting is mandatory. If you furnish or quote inoperative/Invalid PAN, then it is considered that you have not quoted valid PAN and will be liable for all consequences under the income tax act as well as penalty.
I have listed following such transactions that cannot be performed without PAN card or inoperative PAN.
#1 PAN is mandatory while opening a bank account. You cannot open a bank account by using Inoperative PAN.
#2 You need to furnish PAN card while applying for a credit card or debit card. Application of credit card or Debit card shall not be accepted with inoperative PAN.
#3 It is mandatory to mention PAN number while buying and selling immovable property above 10 Lakh. As inoperative PAN will not be valid, you will not able to buy or sell such properties.
#4 At the time of opening Demat account, you need to furnish PAN card. Opening new Demat account or transfer of Demat account is not possible with inoperative PAN.
#5 As of now, you need to produce your PAN card for payment of hotel or restaurant bill exceeding Rs.50000. You may face issues
#6 As per rule, if you are buying or selling any motor vehicle you need to mention your PAN card number on the documents. Inoperative PAN means you no transaction of buy & sell allowed for automotive vehicles.
#7 Depositing cash of over Rs.50000 in day allowed by bank only by furnishing PAN card. Inoperative/Invalid PAN card holder shall not deposit cash in the bank.
#8 Payment of more than Rs.50000 in a financial year to pre-paid payment instruments is allowed with mentioning PAN card only. Such a transaction is not permissible with inoperative/invalid PAN.
#9 If you want to purchase gold from the market exceeding certain amount, you need to provide PAN card. Thus buying gold is not possible with inoperative/invalid PAN.
#10 You will not able to buy mutual funds, debenture, bonds etc worth more than Rs.50000.
#11 Cash payment of more than Rs.50000 for the travel to any foreign country or payment for purchase of foreign currency requires PAN card. Such a transaction will be impacted by inoperative/invalid PAN card.
You will not able to file income tax returns if your PAN is not linked with Aadhaar.
How to check if PAN is operative or not?
As of now system for checking the operative status of PAN is not launched. However, as per notification soon income tax will release formats, and procedures for checking the operational status of PAN. This is to ensure that only valid PAN cardholder (linked with Aadhaar) will be able to perform various transactions.
How to link your Aadhaar with PAN card?
The process of linking Aadhaar with PAN card is very easy.
Step 1 – Visit e-filing portal of income tax India by clicking on https://incometaxindiaefiling.gov.in
Step 2 – In left pane navigation, you will find Link Aadhaar link.
Step 3 – Click on the link and you will be prompted to provide information about PAN, Aadhaar Number and Name as per Aadhaar Card. Enter exact information as per Aadhaar card, avoid spelling mistakes or capital small wording.
Step 4 – After providing all the information you have to click on Link Aadhaar button. After verification from UIDAI, the linking will be confirmed.
The screen will show Aadhaar PAN linking is completed successfully
What happens if my PAN is linked to Aadhaar after 31st March, 2020?
You can link your PAN with Aadhaar after 31st March,2020 also. The inoperative PAN card gets operational once it is linked to Aadhaar. However, any transaction done at the time of PAN is inoperative will be null and void. So, it is advisable to link the two before the deadline.