PAN card holders who fail to do so may be fined Rs 10,000 for each non-compliance | Job Binary

If your Permanent Account Number (PAN) is not linked to your Aadhaar card, your PAN card will become inactive, starting April 1, 2022. The Income Tax Department has extended the deadline till March 31, 2022, by which all PAN cards in India should be linked with Aadhaar cards. All PAN cards not linked to Aadhaar cards will be declared inactive after the expiry date.

As per Section 139AA of Income Tax Act, every person having PAN as on July 1, 2017 and eligible to get Aadhaar should link PAN with Aadhaar. Taxpayer must mention Aadhaar number while filing income tax return.

If the PAN is deactivated, the Income Tax Department will consider the person as not having submitted the PAN and hence face the consequences. “If a person whose permanent account number has been deactivated…, is required under the Act to provide, inform or mention his permanent account number, he shall be deemed not to have provided, informed or mentioned the permanent account number. The case may be in accordance with the provisions of the Act and he shall be liable for not providing, informing or mentioning the permanent account number under the Act. will be responsible for all the consequences,” the CBDT had earlier quoted.

A hefty fine of Rs 10,000 every time you fail to provide the PAN number

It should be noted that having a PAN card is mandatory for several purposes like opening a bank account, buying mutual funds or shares and making cash transactions above Rs 50,000.

As per Section 272B of the Income Tax Act, a penalty of Rs 10,000 can be levied if PAN is not quoted or furnished as per the Income Tax Act. Under the provisions, a penalty may be imposed for each such non-compliance.

Explaining the rules, Taxman DGM Naveen Wadhwa said, “A penalty of Rs 10,000 will be imposed for each default. Suppose Mr A’s PAN becomes inactive. They make cash payments to hotels for amounts above Rs 50,000 and cash payments for purchases of foreign currency above Rs 50,000. In this situation, the Income Tax Department can impose a penalty of Rs 20,000, i.e. Rs. 10,000 for each default.”

In Budget 2021, the central government has added a new section 234H in the Income Tax Act, requiring a person to pay a penalty if PAN and Aadhaar are not linked after the deadline. So if a person misses the deadline, he or she will be liable to pay a fine not exceeding Rs 1,000.

Commenting on the PAN Aadhaar linking deadline, founder Sujit Bangar said, “Though the deadline for PAN linking with Aadhaar has been extended till March 31, 2022, it is advisable to complete this linking as soon as possible. Linking PAN and Aadhaar has many benefits like early receipt of refunds.

Your inactive PAN cards will be functional when the Aadhaar linking process is complete. If you are not sure whether your PAN is linked to Aadhaar, you can check the status here.

Read all latest news, breaking news and live updates of assembly elections here.

Source link