Note: This article is especially for SunCrypto users, but linking his/her PAN Card with their Aadhar Card is a must for every Indian citizen.
The Income Tax Department and the Central Board of Direct Taxes issued a statement in March 2022 regarding the linkage of PAN cards and Aadhar cards, which was a significant development for trading users in India. The authorities stated that accounts of users will be declared inactive if their PAN Card is not connected to their Aadhar Card after 31st March 2023.
Based on these guidelines, no trading platform in India allows users to trade on their platforms whose PAN Cards are not linked with their Aadhar Card after the above-mentioned date. However, SunCrypto provided its users with a hassle-free trade service without necessitating these conditions.
But now, SunCrypto is taking rigorous measures to ensure compliance with this mandate. Starting from November 5th, 2023, SunCrypto will temporarily suspend trading and withdrawal services for users who have not linked their PAN card with their Aadhar card.
SunCrypto Disabling Users’ Trading Services
SunCrypto's decision to temporarily suspend trading and withdrawal services for users who have not linked their PAN card with their Aadhar card reflects the cryptocurrency industry's ongoing efforts to align with evolving regulatory standards in India.
The move is aimed at enhancing transparency and accountability within the crypto ecosystem, as KYC guidelines help authorities track and monitor financial transactions. Apart from that, users’ failing to comply with this requirement will result in the classification of users as “inactive.”
What to do After Linking PAN Card with Aadhar Card
For users who wish to continue enjoying SunCrypto's trading services, the process is straightforward. Link your PAN card with your Aadhar card, and then inform the SunCrypto support team by generating a ticket.
This step is crucial to ensuring uninterrupted access to cryptocurrency trading on the platform. To contact the SunCrypto Support Team, you can generate a ticket at https://help.suncrypto.in/support/tickets/new or you can call us at +91 8604860498.
What If You Don’t Want to Link Your PAN Card with Your Aadhar Card
If you don’t want to link your PAN card with your Aadhar card, SunCrypto provides an alternative option. Reach out to our support team and inform them about your decision. In response, SunCrypto's support team will provide you with a consent form.
This form asks you to give consent to a 20% Tax Deducted at Source (TDS) deduction on every transaction, in compliance with the guidelines of the Income Tax Department. As a result, we suggest our users to link their PAN Card with their Aadhar Card as soon as possible to avoid all these expensive hurdles.
Disadvantages of Not Linking Your PAN Card with Aadhar Card
While the decision to link your PAN card with your Aadhar card or accept the 20% TDS deduction may seem challenging, there are several disadvantages to not linking your credentials.
One of the primary drawbacks is the potential inconvenience you may face while filing your Income Tax Returns (ITR). Additionally, accessing certain government services that require PAN-Aadhar linkage may become cumbersome.
Conclusion
The recent update to CBDT's KYC guidelines serves as a reminder of the cryptocurrency industry's commitment to regulatory compliance. SunCrypto's decision to suspend services for non-compliant users underscores the importance of adhering to these guidelines. The platform seeks to ensure the safety and security of its users while maintaining transparency in financial transactions.
SunCrypto's actions are in line with this evolving landscape, and while it may pose temporary inconveniences, it is a step towards a more secure and regulated cryptocurrency ecosystem in the country.