New Delhi: If your PAN is also a PAN card, then it is very important for you to know this news, because PAN card holders are advised to link their Permanent Account Number (PAN) with their Aadhaar card number by 31 March 2022. to do so by the given time limit will not only make their PAN card invalid, but also require a fee of ₹1,000 for linking PAN with Aadhaar.
The problem of a PAN card holder will not end here, as one will not be able to invest in mutual funds, stocks, open bank accounts, etc., where it is necessary to present a PAN card. Further, under section 272N of the Income Tax Act 1961, if the person produces a PAN card, which is no longer valid, the Assessing Officer may direct that such person shall pay an amount of ten thousand rupees as penalty.
Speaking on the importance of PAN-Aadhaar linking deadline Amit Gupta, MD, SEBI-registered income tax solutions provider SAG Infotech, said, “Earlier, there was no provision of penalty in the rules related to Aadhaar PAN linking. As per the new law, two Failure to link the ID will result in invalidation of PAN, which means that one cannot conduct financial transactions requiring PAN details, including filing income tax returns and opening a bank account. More TDS amount may have to be paid. A penalty of ₹10,000 will be levied as per section 272B of the Income Tax Act, if the person fails to quote PAN, if required.”
He said that furnishing of invalid PAN will also attract a fine of Rs 10,000. Hence, it is important for the PAN card holder to link his/her PAN card with his/her Aadhar card and avoid any kind of penalty after failing to meet the deadline for PAN Aadhaar linking.
PAN card holders are also advised to note that failing to meet the deadline for PAN-Aadhaar linking will attract a penalty of up to ₹1,000 for late linking of PAN with Aadhaar.
According to newly inserted section 234H of the Income-tax Act (via the Finance Bill in March 2021), “without prejudice to the provisions of this Act, where a person is required to verify his Aadhaar number under sub-section (2) of section 139AA, is required to give notice and such person fails to do so on or before such date, he shall, at the time of giving notice under sub-section (2) of section 139AA, after the said date, as may be prescribed shall be liable to pay such fee, not exceeding one thousand rupees.”