If your Permanent Account Number (PAN) is not linked with your Aadhar card, then your PAN card will become inactive from April 1, 2022. Income Tax Department has extended the deadline till March 31, 2022, within which all PAN cards in India. Must be linked with Aadhar card. All such PAN cards which are not linked with Aadhar card will be declared inoperative after the expiry of the time limit.
As per Section 139AA of the Income Tax Act, every person who has PAN as on 1st July 2017 and who is eligible to obtain Aadhaar, must link PAN with Aadhaar. The taxpayer should mention the Aadhaar number while filing the income tax return.
In case the PAN becomes inoperative, the Income Tax Department will consider that the person has not submitted the PAN and hence is liable to suffer the consequences. “Where a person, whose Permanent Account Number has become inactive… has done, as the case may be, in accordance with the provisions of the Act, and he shall be liable for all consequences under the Act for not furnishing, informing or quoting the Permanent Account Number,” the CBDT had earlier mentioned. .
Heavy fine of Rs 10,000 for not giving PAN number every time
It is to be noted that having a PAN card is mandatory for many purposes like opening a bank account, buying mutual funds or shares and even doing cash transactions above Rs 50,000.
As per Section 272B of the Income Tax Act, a fine of Rs 10,000 can be imposed if PAN is not quoted or furnished as required by the Income Tax Act. Under the provisions, penalty may be imposed for every such non-compliance.
Explaining the rule, Naveen Wadhwa, DGM, Taxman, said, “A fine of Rs 10,000 will be levied on each default. Suppose, Mr. A’s PAN becomes inactive. He makes cash payments to a hotel for amounts exceeding Rs 50,000 and also makes cash payments for purchases of foreign currency for amounts exceeding Rs 50,000. In such a situation, the Income Tax Department can impose a fine of 20 thousand rupees i.e. 20 thousand rupees. 10,000 for each default.”
In Budget 2021, the central government has added a new section 234H in the Income Tax Act, where a person will have to pay a penalty for not linking PAN and Aadhaar after the expiry of the deadline. So if a person misses the deadline, he will have to pay a fine of not more than Rs 1,000.
Commenting on the deadline for linking PAN Aadhaar, Sujit Bangar, Founder, TaxBuddy.com said, “Even though the deadline for linking PAN with Aadhaar has been extended till March 31, 2022, this linkage should be done at the earliest. It is recommended to complete Linking PAN and Aadhaar has many benefits like quicker receipt of refunds.”
Your dormant PAN card will be functional as soon as the Aadhaar linking process is completed. If you are not sure whether your PAN is linked with Aadhaar or not, you can check the status here.
read all breaking news, today’s fresh news And Assembly Election Live Updates Here.