Aadhar PAN Link: The PAN card holders are advised to link their respective Permanent Account Number (PAN) with their Aadhar card number latest by March 31, 2022.
Failure to do so by the deadline would result in their PAN card becoming invalid, as well as a fine of Rs 1,000. PAN card holders' problems will not end here, because if they don’t do so they will not be able to invest in mutual funds, stocks, open bank accounts, etc.
Valid PAN card is a Must
Apart from this, if a person has a PAN card, which is no more valid, then under Section 272N of Income Tax Act 1961, the Assessing Officer may direct that such person shall pay, by the way of penalty, a sum of Rs 10,000.
Importance of PAN-Aadhar Linking
While speaking on the importance of linking Pan with the Aadhar deadline, Amit Gupta, MD at SAG Infotech- a SEBI- registered income tax solution provider company said that “Earlier, the rules pertaining to Aadhar PAN linking had no provision of the penalty.
Failure to link the PAN and Aadhar IDs, according to the new rule, will make your PAN card invalid, which implies that one of these IDs will be unable to execute financial activities that require PAN details. These tasks include submitting a tax return and opening a bank account. Also, if a person fails to provide a PAN when required, he or she may be subject to a greater TDS amount under Section 272B of the Income Tax Act."
Penalty of Rs 10,000
He said that furnishing an invalid PAN would also lead to a penalty of Rs 10,000. So, it is extremely important for a PAN cardholder to seed its PAN card with its Aadhar card to avoid any kind of penalty after failing to meet the PAN – Aadhar Linking Deadline.
The PAN cardholders are also advised to note that failing to meet PAN Aadhar linking deadline, they will have to pay upto Rs 1,000 penalty for a late seeding of PAN with Aadhar.
"Without prejudice to the provisions of this Act, where the person is required to intimate his/her Aadhar number under sub-section (2) of section 139AA and such person fails to do so on or before the deadline, as may be prescribed, he shall be liable to pay a fee, as may be prescribed, not exceeding Rs 1,000 at the time of linking under sub-section (2) of section 139AA after the deadline, as may be prescribed," says the newly inserted Section 234H of the Income Tax Act.
