The Aftermath of Not Linking Your PAN and Aadhaar by June 30, 2023: What You Need to Know

## The Impact of an Inoperative PAN

An inoperative PAN is equivalent to not having a PAN at all. Consequently, you cannot quote your PAN wherever it's mandatory. This includes common financial activities, such as opening a bank account or investing in fixed deposits.

## Salary Credit and Banking Transactions

Despite your PAN being inoperative, your salary will continue to be credited to your bank account. However, the inoperative status of your PAN might affect certain banking transactions.

For instance, banks won't permit foreign currency ATM withdrawals, point of sale transactions, or even foreign currency outward remittances.

Furthermore, if your PAN is inoperative, your debit and credit cards linked to your bank account might be temporarily restricted until your PAN is reactivated.

## The KYC Conundrum

Banks rely on a valid and active PAN for KYC (Know Your Customer) compliance.

If your PAN is inoperative, you might be required to update your PAN information or provide an alternative officially valid document to maintain your KYC compliance.

## The Alternative: Form 60

With an inoperative PAN, you'll be required to submit Form 60. This form is to be submitted wherever PAN is mandatory, but isn't available.

For instance, for cash deposits exceeding Rs 50,000 per day, banks might ask for Form 60.

## Impact on Form 15G/H Submission

If you're under 60 years and wish to prevent tax deduction at source (TDS) on interest income, you can submit Form 15G in the bank.

Similarly, senior citizens can submit Form 15H for the same. However, if your PAN is inoperative, banks may not accept these forms.