Aadhaar, PAN details now mandatory for investing in small savings schemes: Govt
The finance ministry said that the user needs to furnish PAN number on investments above a certain limit.
The last date for linking Permanent Account Number (PAN) and Aadhaar has been extended till June 30. These two documents are an integral part of know your customer (KYC) process. Now, the Ministry of Finance has said that your PAN and Aadhaar number are mandatory for investments in small savings schemes.
According to a notification issued by the ministry of finance on March 31, the changes are now a part of the KYC for small saving schemes. Earlier, the investments in such schemes was possible without submitting Aadhaar number. But, the subscriber will need to submit at least an Aadhaar number for investing in such schemes. Also, the finance ministry said that the user needs to furnish PAN number on investments above a certain limit.
The notification says that the subscribers having invested in small saving schemes like PPF, Sukanya Samriddhi Yojana (SSY), National Savings Certificate etc should submit Aadhaar number by September 30. The new subscribers intending to do so must submit Aadhaar details within six months of account opening, the notification added.
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In case a subscriber has not been assigned an Aadhaar number from the Unique Identification Authority of India (UIDAI), the enrolment number would work. But if the Aadhaar details are not submitted within six months of account opening, the small savings scheme account will be frozen from October 1 this year.
The ministry of finance notification stated that PAN number needs to be furnished while opening savings account. In case it is not submitted at the time of account opening, it should be done withing two months. This should be done in case the balance at any point of time in the account is more than ₹50,000.
The PAN details need to be submitted in case the aggregate of all withdrawals and transfers in a month from the account is more than ₹10,000, and if the aggregate of all credits in the account in any fiscal year is more than ₹1 lakh.
The notification said that if the subscriber fails to submit PAN details within the specified period of time, the account will cease to be operational till the PAN number is furnished.
