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Consequence of not linking PAN with Aadhaar
The existing proviso to the sub-section (2) of section 139AA, provides that the PAN allotted to a person shall be deemed to be invalid, in case the person fails to intimate the Aadhaar number, on or before the notified date.
In order to protect validity of transactions previously carried out through such PAN, it is proposed to amend the said proviso so as to provide that if a person fails to intimate the Aadhaar number, the PAN allotted to such person shall be made inoperative in the prescribed manner.
This amendment will take effect from 1st September, 2019.
[Clause 41]
PAN-Aadhaar linkage: failure to intimate Aadhaar renders PAN inoperative while preserving prior transactions under proposed amendment. Failure to intimate Aadhaar will result in the PAN being made inoperative in the prescribed manner rather than being deemed invalid, with an express provision preserving the validity of transactions previously carried out through that PAN; the amendment is prospective and will take effect from the notified effective date.
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