Link your Fixed Account Number (PAN) and Aadhaar before 31 March 2022; if not, then there is a penalty, and your PAN becomes inactive, the finance ministry said.
Under the provisions of the Income Tax Act, 1961 (“the Act”), every person who has been allocated PAN on 1 July 2017, and is eligible to obtain an Aadhaar Number, is required to submit their Aadhaar to the designated authority on or before 31 March 2022.
When it fails to do so, the PAN will become dysfunctional, and all procedures for which the PAN is required will be terminated.
PAN may resume operations when Aadhaar is notified to the designated authority after payment of the prescribed fee.
However, to reduce inconvenience to taxpayers, as in Notification No.17/2022 dated 29 March 2022, a window of opportunity has been given to taxpayers until 31 March 2023, to inform their Aadhaar to the designated authority for Aadhaar-PAN Link without face the effects.
As a result, taxpayers have to pay a fee of Rs. 500 to three months from April 1, 2022, and a fee of Rs. 1000 after that, while signaling their Aadhaar.
However, until 31 March 2023, PAN assessors who do not inform their Aadhaar will continue to function for procedures under the Act, such as granting income refunds, processing refunds etc.
Detailed Circular Bil.7/2022 dated 30.03.2022 has also been issued.
After 31 March 2023, PAN taxpayers who fail to inform their Aadhaar, as required, will become void, and all consequences under the Act for not providing, informing or quoting PAN will be imposed on such taxpayer.