NPS Restriction: Mandatory for NPS members to link PAN, transaction will stop after deadline

The Central Board of Direct Taxes (CBDT) has extended the deadline for linking Permanent Account Number (PAN) with Aadhaar till June 30, 2023.

The pension regulator (PFRDA) has told the members of the National Pension System (NPS) that if a member’s PAN and Aadhaar are not linked within the stipulated time frame, then the transaction in his NPS account will be banned (NPS Restriction).

The Pension Regulator (PFRDA) said in a notification issued on 2 May 2023 that it is mandatory for all NPS members to link their PAN with Aadhaar. A notification has also been issued regarding this on March 23, 2023. PAN fulfills the key identification number and Know Your Customer (KYC) requirements for NPS accounts. Therefore, it is mandatory to link it, so that continuous and smooth transactions continue from the NPS account.

According to the circular of the Central Board of Direct Taxes (CBDT), if the PAN given to a person is not linked to Aadhaar by June 30, 2023, it will become inactive. If this happens, penalty and fine will be applicable under the Income Tax Act 1961. At present, late fee of Rs 1,000 has to be paid for linking PAN-Aadhaar. Fee paid under Income Tax Act section 234H will not be refunded.

How to update Aadhaar in NPS account

Aadhaar card is used as KYC details in NPS account. NPS members will have to verify all the details of Aadhaar linked with NPS before linking PAN Aadhaar. If there is any change in the Aadhaar details, then there may be difficulty in getting the benefit of PAN Aadhaar link to the NPS members. Know here the process of updating Aadhaar linked in NPS account online.

1. NPS Subscriber First of all login to your NPS account through https://cra-nsdl.com/CRA/.
2. After this, click on the member menu ‘Update Aadhaar / Address Details’.
3. Members now click on ‘Update Details’ under the new menu that opens.
4. The applicant then selects the option ‘Add/Update Aadhaar Number’.
5. Now enter your Aadhaar number and click on ‘Generate OTP’.
6. Member should enter the OTP received from UIDAI on his registered mobile number.
7. After this, after authentication through OTP, Aadhaar will be linked to your PRAN.
8. The name entered for PRAN of the NPS member should match with the registered name.
9. After this, you will get the message that Aadhaar seeding is successful for your Permanent Retirement Account Number (PRAN).