The last date to link PAN and Aadhaar numbers is March 31, 2022. If you fail to do so, late fees of Rs 1,000 will be applicable. This provision was added in the Winter Session 2021 under Section 234H of the Income Tax Act through a Finance Bill. After the deadline, if not linked, the PAN card will be inoperable.
The PAN cards that are made with Aadhaar Card as an ID proof don’t need to worry about this linking as it is already linked when the PAN card is made.
Did you know under section 272B of the Income Tax Act, if a citizen has an invalid or inoperable PAN card, the Assessing Officer may impose a penalty of Rs 10,000?
The new rule states, “Without prejudice to the provisions of this Act, where a person is required to intimate his Aadhaar number under sub-section (2) of section 139AA and such person fails to do so on or before such date, as may be prescribed, he shall be liable to pay such fee, as may be prescribed, not exceeding one thousand rupees, at the time of making intimation under sub-section (2) of section 139AA after the said date.”
What Happens If You Do Not Link PAN-Aadhar Numbers before the deadline
- A late fee of Rs 1,000 is applicable if you miss the deadline to link the PAN and Aadhaar numbers.
- The PAN cardholder will not be able to file for ITR (Income Tax Return) if your PAN card is inoperable.
- A fine of Rs 10,000 will be imposed if the cards are not linked.
- You won’t be able to invest in shares, mutual funds, bonds or open a new bank account.
So, if you link it on time, you will be able to save that Rs 10,000 fine which will otherwise go away if you miss linking the PAN number and Aadhar Number.
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