NEW DELHI: The income tax department has said permanent account numbers that are not linked to Aadhaar by July 1 will not be cancelled, stepping in to calm the panic caused by a notification issued on Wednesday.

“There is no need for any panic. PAN will not become invalid after June 30,” Sushil Chandra, chairman of Central Board of Direct Taxes (CBDT) told ET.

The board will notify a date later on when PAN without Aadhaar will not be valid, he said.

“Every person who has been allotted permanent account number as on the 1st day of July, 2017 and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the Principal Director General of Income-tax (Systems) or Director-General of Income-tax (Systems) or the person authorised by the said authorities,” a government notification earlier this week said.

People rushed to link their Aadhaar with PAN believing that June 30 is that last date. The department will provide a date by which this linking has to be completed failing which unlinked PANs will be declared invalid