What Happens to Investments/Trades If PAN & Aadhaar Not Linked

The deadline for linking (seeding) your Permanent Account Number (PAN) with your Aadhaar is soon approaching. Starting 1st April 2023, stock exchanges and Central Depository Services (India) Limited (CDSL) will suspend the demat accounts of investors whose PAN is not linked with Aadhaar.

How will this impact your Angel One Demat account?

New users of Angel One:

If you don’t link your PAN with your Aadhaar, you will not be able to open a Demat account as stock exchanges and depositories will not accept the creation of a new user. Even if you initiate the Demat account opening process on Angel One, you will be stopped during the KYC process and it will only go through upon successful seed of your PAN and Aadhaar. On initiating the linking processes, you will be able to start trading after 7-8 working days
Existing users of Angel One:

If you already have a Demat account with Angel One but your PAN-Aadhaar are not seeded, you will be prompted to link them at the earliest. Unless you do this, you will not be able to place fresh trades or square off existing positions. Trades will get through after 2-3 days of raising the linkage request
Inactive/dormant users of Angel One:

If you have not done any trading activity via Angel One in the past 1 year, you will have to adhere to the re-KYC procedure. But to complete this process, you will have to link your PAN and your Aadhaar

What will happen to my trades and investments if I don’t link my PAN to my Aadhaar?

Your Demat accounts will be suspended
Stock exchanges and CDSL will not accept buy/sell orders relating to your trades investments
You will not be able to square off your existing positions
Your SIP investments could get cancelled automatically. Ultimately, this would delay your financial goals
Your Margin-traded Funds (MTF) on Angel One would be impacted. You would not be able to pledge and unpledge your shares with Angel One

Monetary consequences of not linking your PAN with your Aadhaar?

If you fail to seed your documents, the IT department will charge a fee of Rs. 1000 before you submit the linkage request. You can pay the fee via the e-Pay Tax service. Visit https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar for more payment-related information
If you have paid the fee via the Protean (NSDL) portal, you can try linking your documents after 4-5 working days from the date of making the payment

How to link PAN with Aadhaar?

You can link your PAN with your Aadhaar by following these steps:

Visit https://www.incometax.gov.in/iec/foportal/ to check if your PAN-Aadhaar is already linked. Click on ‘Link Aadhaar Status’ on the left-hand side. Enter your PAN and Aadhaar number and click on ‘View Link Aadhaar Status >’
If not linked, you can link them by selecting Select ‘Link Aadhaar Status’ option on the same page – https://www.incometax.gov.in/iec/foportal/
Enter your PAN and your Aadhaar details and click on ‘Validate’
If you get a pop-up window saying “Payment details not found for this PAN”, you need to pay the fee by clicking on ‘Continue to Pay Through E-Pay Tax’
Enter your PAN, reconfirm PAN, fill in your mobile number and click on ‘Continue’
Enter a 6-digit OTP and click on ‘Continue’ to verify it
Now click ‘Continue’ again to pay
Select ‘Assessment Year 2023-24’ and ‘Other receipts (500)’
Click ‘Continue’ to verify the amount
Continue to select your payment method. Complete your payment and download the receipt
Check if your payment is processed after 4-5 days by visiting https://www.incometax.gov.in/iec/foportal/ and clicking on ‘Link Aadhaar’
After 4-5 days of making the payment, visit https://www.incometax.gov.in/iec/foportal/ and click on ‘Link Aadhaar Status’ option
If your payment is received, click on ‘Continue’
On the next page, enter your Name as per your Aadhaar and mobile number. Tick the applicable checkboxes and click on ‘Link Aadhaar’ option
Next, validate your OTP
After 4-5 days, repeat Step 1 to check on your ‘Link Aadhaar Status’