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There is good news for distributors. Mutual fund transactions will not be disrupted due to non-linkage of PAN and Aadhaar till March 31, 20213.
In a circular, the government has extended the PAN-Aadhaar linking deadline by a year to March 31, 2023. However, the linking of the documents no longer remains free. PAN holders will have to pay Rs. 500 to link it with Aadhaar if they do it by June-end 2022. The fee will be Rs. 1,000 after that.
According to a notification issued by finance ministry, PAN not linked with Aadhaar will become inoperative after March 31, 2023.
"After March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers," the notification stated.
It is important for the PAN to remain operational for the continuity of mutual fund transactions. AMFI along with fund houses has been constantly reminding investors and MFDs to link the two documents. Individual MFDs have also been pushing their clients to get the linking done as soon as possible.
