The Pension Fund Regulatory and Development Authority (PFRDA) has issued an advisory to all Point of Presence (POPs), Central Record-keeping Agencies (CRAs), and NPS Trust, stating that the linking of Permanent Account Number (PAN) with Aadhaar must be completed by March 31, 2023. Failure to do so will result in the PAN becoming inoperative and will lead to consequences under the Income-tax Act, 1961. Since PAN is a crucial identification number and part of Know Your Customer (KYC) requirements for National Pension System (NPS) accounts, all intermediaries are required to ensure valid KYC for all subscribers. Existing subscribers are also advised to link their PAN with Aadhaar prior to the deadline to avoid non-compliance consequences and restrictions on NPS transactions.
Linking of PAN with Aadhaar to be done by March 31, 2023
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
File no.: PFRDA/16/05/112/0018/2020-REG-POP
23rd March, 2023
All Point of Presence (POPs), Central Record-keeping Agencies (CRAs) and NPS Trust
Subject: Linking of PAN with Aadhaar to be done by March 31, 2023
The provisions of Income-tax Act, 1961, make it mandatory for every person who has been allotted a Permanent Account Number (PAN) to intimate his/her Aadhaar Number to the prescribed authority so that the Aadhaar and PAN can be linked. This is required to be done on or before the notified date, failing which the PAN shall become inoperative.
- As per Central Board of Direct Taxes (CBDT) circular No. 7 of 2022 dated March 30, 2022, the PAN allotted to a person shall become inoperative if it is not linked with Aadhaar by March 31, 2023 and shall be liable to all the consequences under the Income-tax Act, 1961 for not furnishing, intimating or quoting the PAN.
- Since PAN is the one of the key identification number and part of Know Your Customer (KYC) requirements for NPS accounts, all concerned intermediaries are required to ensure valid KYC for all the subscribers.
- All existing subscribers are also required to ensure linking of their PAN with Aadhaar number prior to March 31, 2023, for continual and smooth transactions and to avoid consequences of non-compliance with the said CBDT circular, as such NPS accounts would be considered non-KYC compliant, and there could be restrictions on NPS transactions until the PAN and Aadhaar are linked.
(Sumeet Kaur Kapoor)