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Link PAN with Aadhaar By March 31 Or Pay Penalty of Rs 500-1,000


Failure to link PAN with Aadhaar by March 31 to attract a penalty of Rs 500-1,000

New Delhi:

The income tax department has said that taxpayers who do not link PAN with Aadhaar by March 31 will pay a penalty of between Rs 500 to Rs 1,000.

The last date to link a Fixed Account Number (PAN) with a biometric Aadhaar is 31 March 2022. Failure to comply with the deadline will result in the PAN becoming inactive.

In a notification, the Central Direct Taxation Board (CBDT) said Aadhaar’s delayed notification would be charged a late fee of Rs 500 in cases where it is linked within the next 3 months or by June 30, 2022.

After that, Rs 1,000 has to be paid by the taxpayer as a penalty.

Not linking PAN with Aadhaar will cause PAN to become non -operational after March 31, 2022. It can operate with the payment of penalties, the CBDT notification dated March 29 said.

AKM Global, Tax Partner Amit Maheshwari said the government, after extending the deadline several times to link Aadhaar with PAN, has finally made a late payment notification where a penalty of Rs 500 will be imposed for the first three months starting April 1, 2022, and thereafter Rs 1,000 .

“Any failure can cause the PAN to become dysfunctional, which assumes that a person does not have a PAN for income tax purposes. Taxpayers should check their income tax portal and ensure that Aadhaar and PAN are linked. NRIs may have some concerns because, in some cases, they have no Aadhaar, “Maheshwari said.

Nangia Andersen LLP Partner Neeraj Agarwala said it was now mandatory to link Aadhaar numbers with PAN to complete income tax -related tasks such as filing income returns.

While PAN is used for various transactions such as opening a bank account, buying immovable property or proof of identity, an inactive PAN will trigger a domino effect. Individuals who do not associate their Aadhaar may face various challenges.

“When your PAN becomes inactive, the person will be barred from conducting financial transactions (where PAN quotes are mandatory such as mutual funds), subject to TDS at a higher rate and penalties under section 272B,” Mr Agarwala said.

For those who do not have access to the income tax portal, the link process is provided via SMS; also, he added.

Agrasmartcity

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