All Point of Presence, CRAs and NPS Trust to comply with IT Act provisions
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 to ensure compliance with provisions of the Income-tax Act, 1961. The advisory directs all individuals who have been allotted a Permanent Account Number (PAN) to link their Aadhaar number with the PAN on or before March 31, 2023, failing which the PAN will become inoperative.
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan, Qutab Institutional Area, Katwaria Sarai, New Delhi – 110 016
Phone : 011 – 26517501, 26517503, 26133730 Fax: 011 – 26517507 website: www.pfrda.org.in
परामश / ADVISORY [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)