ITR
Mutual fund KYC on hold due to inoperative PAN
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Facts
Financial institutions check PAN status, and an inoperative PAN can put KYC on hold or block some transactions. Linking PAN with Aadhaar is the fix.
Provisions and law
- Sec 262, Income-tax Act 2025 (old Sec 139AA)PAN and Aadhaar linking requirement continues under the new Act
- CBDT Circular No. 03 of 2023From 1 July 2023 an inoperative PAN gets no refund, no interest on refund, and higher TDS and TCS
Analysis
Once the PAN is operative, the KYC agency record needs to be refreshed. Example: SIP payments fail and redemptions are delayed for an investor whose PAN became inoperative. After linking, ask the fund house or broker to revalidate KYC. Keep the link confirmation handy.
Conclusion
- Link PAN and Aadhaar
- Wait for operative status
- Ask the broker or registrar to revalidate KYC
- Restart SIPs or pending transactions
A Savvy can do this for you
PAN-Aadhaar linking with late fee, Sec 262 and 430 (old 139AA and 234H)
₹499
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