National Pension System subscribers should note that your NPS account will be considered as KYC non compliant and there will be limitation on NPS transactions until Permanent Account Number (PAN) and Aadhaar card are linked.

This is why NPS subscribers must ensure that their PAN and Aadhaar numbers are linked before March 31, 2023 in order to ensure ongoing and seamless transactions and to avoid penalties, according to the Pension Fund Regulatory And Development Authority (PFRDA).

The PFRDA said “Since PAN is 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”.

The PAN assigned to a person will become inoperative if it is not linked with Aadhaar by March 31, 2023, in accordance with Central Board of Direct Taxes (CBDT) Circular No.

7 of 2022, dated March 30, 2022, and will be subject to all penalties under the Income-tax Act, 1961 for failure to furnish, notify, or quote the PAN.

The provisions of the Income-tax Act of 1961 require everyone who has been assigned a Permanent Account Number (PAN) to notify the relevant authorities of his or her Aadhaar Number so that the Aadhaar and PAN can be linked.

This must be completed on or before the notification date, or the PAN will become inoperative.

If the PAN-Aadhaar link is completed on or after July 1, 2022, a Rs.1,000 fee will be levied.

The fees have now been dismantled into their individual components.

Under no circumstances can the fee paid u/s 234H for late PAN-AADHAAR linkage be refunded.

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