The last date to link your Permanent Account Number (PAN) with Aadhaar is March 31. It is extremely important for all the subscribers for National Pension System. As per the latest guidelines from the Pension Fund Regulatory and Development Authority (PFRDA), the subscribers must ensure that their Aadhaar is linked to their PAN else there will be certain restrictions in their transactions, a Mint report stated.
In a statement issued on March 23, the pension regulatory body had said that PAN is one of the key identification number and is a component of know your customer (KYC) for the NPS accounts. According to the Income Tax Act provisions, it is extremely important for people to link their PAN number to Aadhaar else their PAN will become inoperative.
Even the latest circular of the Central Board of Direct Taxes (CBDT) calls for Aadhaar-PAN linking by March 31. The defaulters will face all consequences under the Income Tax Act 1961 for not furnishing, intimating or quoting the Permanent Account Number.
The PFRDA administers as well as regulates the National Pension System (NPS), which is the world’s lowest-cost pension scheme. Here, the subscribers are allowed to pick their own investment options and pension fund.
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To open an NPS account, an applicant needs to open an account with any one of the points of presence run via all head post offices across the country. They will get a Permanent Retirement Account Number (PRAN).
The National Pension System also offers tax benefits as the subscriber can claim tax exemptions under Section 80 CCD(1) within the overall ceiling of ₹1.5 lakh under Section 80 CCE.
