ITR

Mutual fund KYC on hold due to inoperative PAN

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Find

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

Sec 262, Income-tax Act 2025 (old Sec 139AA); CBDT Circular No. 03 of 2023

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.

Close

  1. Link PAN and Aadhaar
  2. Wait for operative status
  3. Ask the broker or registrar to revalidate KYC
  4. Restart SIPs or pending transactions

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