New PAN Card Rule: PAN-Aadhar Linkage Now Mandatory, Know The Last Date

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The Indian government has introduced a new regulation for all PAN card holders to link PAN cards with Aadhar cards to prevent financial fraud. The government has appealed to people to link the two cards till December 31, 2024, or their PAN card will get deactivated, leading to potential complications. 

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The development comes amid a rise in the cases of financial fraud, as several fintech firms had been using PAN information to create customer profiles without user authorization, raising privacy concerns. The Ministry of Home Affairs (MHA) has directed the Income Tax department to restrict the access of the personal details through PAN, aiming to prevent misuse of sensitive personal information. 

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Why PAN Is Being Linked To AADHAR Card?

The primary goal of linking PAN and Aadhaar currently is to enhance financial transparency and to ensure that financial data is managed responsibly and ethically. The financial transparency will help to minimise the risk of fraud and cybercrime. While these new rules may disrupt the operations of certain fintech companies, they will also foster innovation and promote ethical data management practices, leading businesses to adopt more transparent and compliant approaches to handling customer financial data. By enforcing stricter regulations, the government is promoting a more secure financial system for everyone. The linkage requirement is designed to ensure adherence to tax regulations, simplify financial record-keeping, and minimise instances of identity theft and tax fraud.

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What If AADHAR Is Not Linked To PAN Card ? 

There can be severe consequences of not linking the Aadhar card with the PAN card by December 31, 2024. The PAN card will be deactivated if one fails to link the two cards. Apart from facing difficulties in the further transactions, it will be tough to reactivate it later. It is important to stay aware of data privacy laws and be careful while disclosing personal data online.