Last updated time: 09 March 2023, 15:07 IST
The provisions of the Income Tax Act make it mandatory for every person who has been issued a PAN to report his Aadhaar number to the prescribed authority.
All existing investors should ensure linking of their PAN number with Aadhaar number by March 31, 2023 for seamless and smooth transactions in the securities market.
Capital markets regulator Sebi on Wednesday asked all investors to link their PAN number with their Aadhaar number by the end of March for seamless and smooth transactions in the securities market.
Failure to do so will be considered non-KYC compliant and may result in restrictions on securities and other transactions until the Permanent Account Number (PAN) and Aadhaar are linked, Sebi said in a statement.
The Central Board of Direct Taxes (CBDT) issued a circular in March 2022 stating that the PAN allotted to a person will become inoperable if not linked with Aadhaar by March 31, 2023 and the Revenue will be liable for all the consequences. – Taxation Act, 1961, for failure to issue, notify or quote PAN.
Also Read: How to link PAN and Aadhaar by March 31, 2023 without penalty?
“As PAN is the primary identification number and part of the KYC requirements for all securities market transactions, all Sebi-registered entities and Market Infrastructure Institutions (MIIs) must ensure valid KYC for all participants.
“All existing investors should ensure linking of their PAN number with Aadhaar number by March 31, 2023 for continuous and smooth transactions in the securities market and to avoid consequences of non-compliance with the said CBDT circular,” the Securities and Exchange said. Board of India (Sebi) reported.
The provisions of the Income Tax Act make it mandatory for every person who has been issued a PAN to report his Aadhaar number to the designated authority so that Aadhaar and PAN can be linked. This should be done on or before the notified date, failing which the PAN will not work.
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(This story was not edited by News18 staff and was published by a syndicated news outlet)