The central government has extended the December 31 deadline for mandatory quoting of Aadhaar and PAN numbers for certain financial transactions like opening of a bank account till March 31, 2018.
The new rule notified in the gazette modifies the Prevention of Money Laundering Act of 2002 to replace the requirement of submitting “the Aadhaar number and Permanent Account Number by December 31, 2017” with a provision saying “submit the Aadhaar number, and Permanent Account Number or Form No. 60, by such date as may be notified by the Central Government”. The new deadline, March 31, was announced later in the day.
While the 12-digit Aadhaar is issued by the Unique Identification Authority of India (UIDAI), PAN is allotted by the Income Tax Department. Form 60 is a declaration filed by an individual or a person (not being a company or firm) who does not have a PAN and who enters into any specified transaction.
Tuesday’s notification by the Department of Revenue in the finance ministry effectively paves the way for extending the deadline for mandatory quoting of Aadhaar for activities like opening a bank account. This is in line with the Centre last week informing the Supreme Court that it is willing to extend till March 31 the deadline fixed for mandatory linking of Aadhaar to avail various services and welfare schemes
On December 7, the deadline for linking PAN with Aadhaar was extended by three months to March 31, 2018.Under the PMLA, Aadhaar, PAN and other official documents are required to be obtained by banks and financial institutions from anyone opening a bank account as well as for any financial transaction of Rs 50,000 and above.
The notification issued on Tuesday stated that accounts where Aadhaar and PAN are not furnished by the date notified by the government will cease to be operational. If the account holder “fails to submit the Aadhaar number and PAN by such date as may be notified by the central government, the said account shall cease to be operational till the time the Aadhaar number and Permanent Account Number are submitted by the client”, it said.