The last date to link your Permanent Account Number (PAN) with your Aadhaar is March 31. It is essential 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.
The pension regulatory body issued a statement on 23rd March stating that PAN is a key identification number and a know-your-customer (KYC) component for NPS accounts. The Income Tax Act provisions state that people must link their PAN number to their Aadhaar to prevent the PAN from becoming 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 and regulates the National Pension System (NPS), the world’s lowest-cost pension scheme. Here, subscribers can pick their own investment options and pension fund.
o open an NPS account, an applicant needs to open an account with any 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 lakhs under Section 80 CCE.