Warning to PAN card holders! Do it or pay a fine of Rs 10,000 for not complying Personal Finance News | Job Binary

New Delhi: If your Permanent Account Number (PAN) is not linked to your Aadhaar card, your PAN card will be deactivated on April 1, 2022. The Income Tax Administration has extended the deadline for linking all PAN cards in India. Aadhaar Cards till March 31, 2022. After the deadline, any PAN cards not linked to Aadhaar cards will be declared inactive.

As per Section 139AA of the Income Tax Act, any person who has a PAN on July 1, 2017 and is eligible for Aadhaar should link their PAN to their Aadhaar. While filing income tax return, taxpayers must include their Aadhaar number.

If the PAN becomes inactive, the Income Tax Agency will treat the person as having failed to file the PAN and will make the person liable for the consequences. “If a person whose permanent account number has been deactivated… is required under the Act to provide, communicate or refer to his permanent account number, he shall be deemed not to have provided, communicated or referred to the permanent account number. Subject to the provisions of the Act, and to all consequences under the Act for failure to provide, communicate or refer to the permanent account number. He will be held responsible,” the CBDT said.

It should be mentioned that getting a PAN card is necessary for several purposes including opening a bank account, buying mutual funds or shares and making cash transactions above Rs 50,000.

A penalty of Rs 10,000 can be imposed under Section 272B of the Income Tax Act if the PAN is not quoted or provided as per the Income Tax Act. Each instance of non-compliance may be penalized under law.

The Union government has added a new provision 234H to the Income Tax Act in the Budget 2021, requiring individuals to pay a penalty if they do not link their PAN and Aadhaar within the deadline. If a person fails to meet the deadline, he or she is liable to a fine of up to Rs 1,000.

Once the Aadhaar linking process is complete, your inactive PAN cards will be functional. If you are not sure if your PAN is linked to Aadhaar, you can find here.

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