It is mandatory to link PAN card to Aadhaar

The government has made it mandatory to link PAN card to Aadhaar. Under this, some special transactions will no longer be possible. Complete information in this regard is given below. According to Section 139AA of the Income Tax Act, 1961, it is necessary to link PAN and Aadhaar. Typically, PAN card is required for information on taxpayers’ investment, loan and other business activities.

Problems will come in these 12 transactions

• According to Section 114B of the Income Tax Act, it is mandatory to give PAN number for any financial transaction. If the PAN card is inactive, you may have difficulty in the following 12 transactions:
• It is necessary to give PAN card information to open a bank account, except for the ‘Basic Savings Bank Deposit Account’.
• A PAN card is required for cash deposit of Rs 50,000 or more. Alternatively, you can opt for digital transactions.
• It is necessary to open a demat account for transactions in the stock market, which requires PAN card information.
• PAN card number will also have to be given while applying for debit or credit card.
• If the insurance premium is more than Rs 50,000, then PAN card information is required.
• PAN details will have to be given to pay cash of Rs 50,000 or more in a hotel or restaurant.
• PAN card will be required on cash payment for foreign currency exchange or foreign travel of more than Rs 50,000.
• PAN details will have to be given for mutual fund payment of more than Rs 50,000.
• PAN card information is required to be given on payment of Rs 50,000 for buying debentures or bonds of a company.
• PAN card will be required to purchase bonds worth Rs 50,000 or more from the Reserve Bank of India.
• PAN card information will have to be given on purchase of Rs 50,000 or more a day from the bank for a demand draft, pay-order or bankers check.
• During the financial year, it is necessary to give PAN card information for the fixed deposit of more than Rs 50,000 in the bank and a total of Rs 5 lakh.