PAN card holders after March 31 can face a penalty of up to ₹10,000. Details here | Job Binary

Aadhaar PAN Link: PAN card holders are advised to link their Permanent Account Number (PAN) with their Aadhaar card number by 31st March 2022. Failure to do this within the given deadline will result in invalidation of their PAN card but will incur a fee 1,000 for PAN Aadhaar linking. The problem of PAN card holders does not end here as the individual cannot invest in mutual funds, stocks, opening a bank account etc. Apart from this, if the person provides a PAN card which is not very valid, under Section 272N of the Income Tax Act 1961, the Assessing Officer may direct such person to pay a sum of ten thousand by way of penalty. Rupee

Talking about the importance of PAN Aadhaar link deadline; Amit Gupta, MD of SAG Infotech – a SEBI-registered income tax solution provider company, said, “Earlier, there was no penalty for rules related to Aadhaar PAN linking. As per the new law, failure to link the two IDs will result in invalidation of PAN, which means one can make financial transactions that require PAN details. No. Including filing income tax return and opening a bank account. Also, the said person may have to pay higher TDS amount, along with penalty. 10,000 will be levied under Section 272B of the Income Tax Act, if the person fails to quote the PAN as and when required.” He said furnishing an invalid PAN would result in a penalty. 10,000. Therefore, it is important for the PAN card holder to seed the PAN card with its Aadhaar card and avoid any penalty after failing to meet the PAN Aadhaar linking deadline.

PAN card holders are advised to note that if they fail to meet the PAN Aadhaar linking deadline, they will have to pay up to 1,000 penalty for late seeding of PAN with Aadhaar. Section 234H of the Income Tax Act was newly inserted (through the Finance Bill in March 2021), “Without prejudice to the provisions of this Act, a person shall be required to furnish his Aadhaar number under sub-section (2) of section 139AA and if such person fails to do so on or before such date as may be prescribed , he shall be liable to pay such fee not exceeding one thousand rupees as may be prescribed at the time of notification under sub-section (2). ) after the said date Section 139AA.”

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