New Delhi: If your PAN card is not updated with your Aadhaar card and becomes inactive, you will face difficulties. If you don’t have a PAN card for any reason, government schemes, as well as banking and other financial transactions, will be stalled. The government has made PAN cards mandatory for cash transactions.
Even if you are planning to buy a vehicle, the delivery will only be possible with a PAN card. Not only that, but you may also face difficulties in withdrawing money from the bank. You can find out in detail below which of your important tasks will be affected if you don’t have a PAN card. This will completely clear up your confusion.
Difficulty in filing ITR
If your PAN card is cancelled for any reason, you will not be able to file your Income Tax Return (ITR). The Income Tax Department has increased the mandatory requirement of PAN cards. It verifies the details of taxpayers. This is why filing ITR without a valid PAN card becomes quite impossible.
No benefit of tax refund
If your income tax refund is in process or the refund of your filed return is pending, the refund will be stalled if your PAN card is inactive. The tax department will only release the refund and the associated interest once the PAN card is active.
Banking transactions will also be affected.d
The inactivity of a PAN card is not limited to ITR and refunds; it will also affect other banking activities. If your PAN cardis cancelledd, you will not be able to open a new bank account. You will not be able to open a Demat or trading account. This will stall many banking transactions.
Difficulty with loans or credit cards
A PAN card is necessary for applying for loans and any type of credit card. If your PAN card is inactive, applications for home loans, personal loans, credit cards, etc., may be rejected. PAN cards are also mandatory for certain transactions.
If you want to deposit or withdraw more than Rs. 50,000 in cash, your PAN card must be active. Restrictions may be imposed if the PAN card is found to be inactive.