As per various circulars issued by SEBI, link PAN with Aadhaar is mandatory for all transactions in the securities market (including mutual fund investments). The deadline for the same is June 30, 2023. If your clients' PAN and Aadhaar are not linked
They will not be able to perform any mutual fund transactions
Any SIPs/STPs/SWPs registered in the folio will be suspended
They may face a deduction of higher taxes at source on any income distribution by the mutual fund.
To check if PAN is linked with Aadhaar, click here
How to link PAN with Aadhaar
If your PAN is not linked with Aadhaar, you need to submit a fine of Rs. 1000 before you can go ahead to link them.
Visit the e-pay tax portal
Enter and confirm your PAN details
Verify your mobile number
Click on Proceed on the Income Tax Tile
Select AY as 2023-24 and type of Payment as Other Receipts (500) and click Continue
Applicable amount will be pre-filled against Others
The above-mentioned payment method for the Aadhaar to PAN link process will work for these banks- Axis Bank, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, Federal Bank, ICICI Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, Jammu & Kashmir Bank, Karur Vysya Bank, Kotak Mahindra Bank, Punjab National Bank, UCO Bank Union Bank of India. (as on 13.01.2023)
If you have a bank account in any other bank follow the below steps:
Visit NSDL portal
Click Proceed under Challan No./ITNS 280
Select Tax applicable as 0021 and Type of Payment as 500
Provide other mandatory details and Proceed
Please select the Assessment Year 2023-24 for making late fee payment for Aadhaar PAN linkage.
If you paid the Aadhaar to PAN link fee via NSDL (Protean), you will have to wait for 4-5 working days to try linking these two cards again. If you paid your penalty of ₹1,000 directly from the e-Pay Tax portal, you can proceed immediately with the following steps:
Via e-Filing Website
Visit the Income Tax e-Filing website to link PAN with AADHAAR
Enter PAN and Aadhaar number in the respective fields
Click ‘Validate’
Via SMS:
Type UIDPAN<12 Digit Aadhaar> <10 Digit PAN> to start the process (For Example: If your Aadhaar number is 456514521487 and PAN is ABCDE1234X, type UIDPAN 456514521487 ABCDE1234X)
Send the message via SMS to either 567678 or 56161 from the registered mobile number for PAN
That's it. Your Aadhar would be linked to PAN.