PAN card to be declared invalid after August 31, if not linked with Aadhaar

Nearly 20 crore Permanent Account Number (PAN) cards will be declared invalid after August 31, 2019, if they are not linked with the holder’s Aadhaar number.

Notably, once the department of tax cancels or invalidates the PAN, it cannot be used again.

An official of the Central Board of Direct Taxes (CBDT) said that it is not possible that 20 crore PAN cardholders in India do not have an Aadhaar card. There are 43 crore PAN cardholders in India and 120 crore Aadhaar holders.

The decision was made as a result of reports received by the Income Tax Department about its illegal use for making loans or getting a credit card. Also, there are some people who use it as an identity proof in Nepal and Bhutan.

Recently in the Union Budget 2019, the Finance Minister Nirmala Sitharaman proposed to make Aadhar interchangeable with PAN.

This makes it mandatory to link the PAN with Aadhaar number, failing to which the PAN card will be invalid from September 1, 2019.

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