How to link Pan with Aadhar: Revising the previous deadline, the last date to link Aadhar with Pan card has now been extended till June 30, 2021. It is important to link both documents because failing to do so, will invalidate your PAN card. Apart from this, it might also attract a late fine.
In order to link PAN and Aadhaar cards, tax payers have to first register on the Income tax e-Filing portal. Here are some consequences if one fails to link both documents before the given deadline.
Mutual Fund Investment
Failing to link Pan card with Aaadhar card will affect both upcoming and existing mutual fund investors. If one plans to invest in mutual funds, the Pan card should be valid. For existing mutual fund investors, invalidation of Pan card will prevent them from adding more units to their existing policy.
Systematic Investment Plan (SIP)
If your PAN becomes invalid, then investments made through Systematic Investment Plan (SIP) will also stop, which means you will not be able to add new units to your mutual fund scheme.
Rs 1000 as fine
According to the Income Tax Department, if a PAN card holder does not link PAN with Aadhaar by June 30, then his PAN will be canceled. After this PAN will not be used for financial transactions.
Redemption and SWP won't work
An existing investor in mutual funds, can't redeem the amount invested in mutual funds if their PAN card becomes invalid. At the same time, the Systematic Withdrawal Plan (SWP) will also stop.
Linking Pan card with Aadhar card is a hassle free process. It can be completed sitting at home and is also free of cost. You can visit www.incometaxindiaefiling.gov.in to go through with the process.