PAN Card Inactive: If PAN card becomes inoperative, will salary be credited into bank account?; Check Details

PAN Card: If your PAN card is not linked to an Aadhaar card by June 30, 2023, it becomes inoperative. This means you will be unable to use your PAN card, and if you do, you may be fined.

According to the Income Tax Act, an inactive PAN is the same as not possessing a PAN card. You will be unable to use your PAN card under such situations when opening accounts, making investments, or completing other operations that need a PAN card.

On the other hand, if your current PAN card has been inactive, a major concern related to banking transactions arises: will your salary get credited into your bank account? It will also have an effect on the use and issuing of debit and credit cards. Let’s know what can be the effect.

Will the salary be credited in the bank account?

If your PAN card has been inactive, this does not indicate that your salary will be withheld. Salary will be credited to the bank account on behalf of the employer. TDS will also be deducted. However, there may be a delay in the process of moving funds from the bank to the account.

Will there be any effect on credit and debit cards?

If your PAN card is no longer active, you will be unable to send money overseas. Cash withdrawals from overseas ATMs and point-of-sale transactions are also prohibited. Additionally, using a credit card overseas will be prohibited.

A PAN card, on the other hand, is essential if you wish to apply for debit or credit cards. In such a case, the discharge of these two might be troublesome. PAN is required for KYC. Nonetheless, banks can issue it using Aadhaar cards and other means.

Can you get your PAN card operative?

If your PAN is dormant, you can revive it by applying to link your PAN with your Aadhaar and paying the Rs.1,000 penalty. However, the PAN will not be effective till 30 days have gone after you requested PAN-Aadhaar linkage.