PAN-Aadhaar Linking | Rs 1,000 fine, PAN becoming invalid: What happens if you fail to link your PAN with Aadhaar Card
New Delhi | Jagran Business Desk: The financial year 2020-21 is about to end and it is time for taxpayers to complete several tax-related tasks before the March 31 deadline. These tasks also include the linking of Permanent Account Number (PAN) card with Aadhaar card. However, the Income Tax Department has announced relief for the people by extending the deadline from March 31 to June 30.
According to the Central Board of Direct Taxes (CBDT), if a PAN is not linked with Aadhaar by the end of the financial year 2020-21, it will become inoperative and the customer will not be able to use his PAN card. The last date of linking PAN with Aadhaar is June 30, 2021.
The government, in the Budget 2021, also included a new section 234H in the Income-tax Act, 1961, in which, if a person links his/her PAN card with Aadhaar card after the expiry of the last date, then a fee of Rs 1,000 can be levied on the customer as a penalty. This penalty will be prescribed by the government, however, it cannot exceed Rs 1,000.
Here is a look at what happens if your PAN is not linked with your Aadhaar:
What happens when PAN is not linked with Aadhaar?
If the customer fails to link PAN with the Aadhaar card by the end of the deadline, his/her PAN will become inoperative and he/she will not be able to use the PAN card in financial transactions wherever it is needed.
What happens if PAN becomes inoperative?
A PAN card is used for carrying out financial transactions, open a bank account, sell or buy a property and make investments. If your PAN becomes inoperative, you can not perform these tasks where PAN is mandatory. A person may also face higher rates of TDS and may be barred from undertaking financial transactions.
What if the PAN is linked with Aadhaar after the due date?
As per the CBDT, once the PAN card is linked with Aadhaar, then it will become operative from the date on which it has been linked with Aadhaar. However, during the process of linking PAN with Aadhaar, a penalty of Rs 1,000 will be levied on the customer under section 234H. After linking PAN with Aadhaar, a person can quote their PAN, wherever quoting it is mandatory.
What if I use an inoperative PAN?
Where a PAN has become inoperative, it will be assumed that PAN has not been furnished/quoted as required by the law and a penalty of Rs 10,000 may apply as per section 272B of the Income Tax Act.
Steps to link your PAN with Aadhaar card:
Log on to the Income Tax Department’s official website - https://www.incometaxindiaefiling.gov.in/home
Under the Quick Links section on the left side of the webpage, click on “Link Aadhaar”.
Enter your PAN, Aadhaar Number and Name as per Aadhaar.
Click the check box if you only have the year of birth in Aadhaar card and then click the check box for agreeing to validate your Aadhaar details with UIDAI.
Enter the captcha code on your screen. You will receive the OTP on your registered mobile number.
Click on the ‘Link Aadhaar’ button and submit the request
Posted By: Talibuddin Khan