Steps to pay a fine of Rs 1,000 for linking Aadhaar with PAN | Job Binary

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by Anshul IST (Updated)


The Income Tax Department has said that if PAN is not linked with Aadhaar by March 31, a penalty of up to Rs 1,000 will be imposed. Here are the steps to link the two

Under current regulations it is mandatory to link your Permanent Account Number (PAN) and Aadhaar number. According to the Central Board of Direct Taxes (CBDT), if you fail to link the two, their PAN cards may become ‘inactive’. As a result, you will not be able to conduct financial transactions.

Although the deadline has passed to link the two without any penalty, you can still do the same by paying a penalty of Rs 1,000.

This can be done on the National Securities Depository Limited (NSDL) portal through Challan no. Payable under ITNS 280 through Major Head 0021 (Income Tax other than Companies) and Minor Head 500 (Other Receipts).

Here is the step-by-step process to pay late fee for Pan-Aadhaar linking:

Step 1: Visit the official e-filing website of the Income Tax (IT) Department to link both. When it asks for payment, click on the link and you will be redirected to the NSDL website.

Step 2: Under Available Options, Challan No. to submit Pan-Aadhaar Link Request. Proceed under ITNS 280

Step 3: Select the applicable tax from there. Payment should be made under Major Head 0021 (Income Tax other than Companies) and Minor Head 500 (Other Receipts) in a single Challan.

Step 4: Select the preferred payment mode and enter the details

Step 6: Enter PAN, Address and Assessment Year

Step 7: Enter captcha and make payment

It may take some time to display this payment in the Income Tax e-filing portal. So, if you want to link PAN with Aadhaar then wait few days after payment.

After verification, you can login to the Income Tax portal, enter all the details (name, date of birth, address, PAN and Aadhaar number) and proceed with linking.

Here are the services affected if PAN is not linked with Aadhaar:

ITR returns will not be processed

Affects bank account savings

As the PAN card is one of the required documents to complete the KYC, this leads to the person’s KYC being incomplete. This affects the savings in one’s bank account.

Additionally, if an individual earns interest on savings above Rs 10,000, the tax deducted at the basic (TDS) rate will be 20 percent as the TDS charged on a bank account without a PAN card will be doubled.

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