PAN, Aadhaar become mandatory for making investments in PPF, NSC, other small savings schemes

Apr 01, 2023

Synopsis
Earlier, the investment in post office schemes or small savings scheme could be done with Aadhaar number. This was done by using any other official valid documents. However, from now on investment in small savings scheme will be done if PAN and Aadhaar is submitted by the individual at the time of making investment

The Finance Ministry has made PAN and Aadhaar numbers mandatory for making investments in post office schemes such as Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Sukanya Samirddhi Yojana (SSY), Mahila Saman Scheme etc. The government issued a notification regarding the same on March 31, 2023. Earlier, an investment could be done without providing one's Aadhaar number. However, going forward, Aadhaar number or Aadhaar enrollment slip will be mandatory to invest in small savings schemes.

As per the notification issued, PAN and Aadhaar number must be submitted. In case the Aadhaar number is not available to the individual when opening an account in post office schemes, he/she shall provide proof of enrollment slip for the Aadhaar number. Further, the account holder will be required to provide the Aadhaar number within six months from the date of opening of the account number to link it with the small savings scheme investment.

If an Aadhaar number is not submitted within six months, then the investment made by an individual will be frozen till the time the Aadhaar number is submitted.

The notification issued further states that PAN or Form 60 must be submitted at the time of opening of investment account. If the PAN is not submitted at the time of opening an account, then it must be submitted within two months in any of the following events:

1. The balance at any point of time in the account exceeds fifty thousand rupees; or
2. the aggregate of all credits in the account in any financial year exceeds one lakh rupees; or
3. the aggregate of all withdrawals and transfers in a month from the account exceeds ten thousand rupees,

Also if PAN is not submitted, within two months then the account will be frozen till the time PAN is submitted.

The post office or bank, where the investment is made, can ask for further documents needed at the time of investment states the notification.

Earlier, if an individual did not have PAN or Aadhaar at the time of investing, then he/she was allowed to submit other official valid documents such as utility bills of any service provider - water, electricity, telephone - not more than two months old, municipal tax receipts, property tax receipts, pension or family pension order issued to retired government employees etc. containing the present address.

From now on, to invest in small savings schemes, the following documents are required to be submitted:

1. A recent passport size photograph
2. Aadhaar number or Aadhaar enrollment slip
3. PAN

[The Economic Times]