The income tax department has stated that taxpayers who do not link their PAN to Aadhaar by March 31 would face a penalty ranging from Rs 500 to Rs 1,000.
The deadline for connecting a Permanent Account Number (PAN) to biometric Aadhaar is March 31, 2022. If the deadline is not met, PAN will become inactive.
In a notification, the Central Board of Direct Taxes (CBDT) stated that delayed Aadhaar intimation will incur a late fee of 500 if it is not connected within the following three months or by June 30, 2022.
Following that, taxpayers would be required to pay a penalty of Rs 1,000.
If PAN is not linked to Aadhaar, it would become inactive after March 31, 2022. According to a CBDT notification dated March 29, it can be operationalized in exchange for a penalty payment.
Amit Maheshwari, Tax Partner at AKM Global, stated that the government, after extending the deadline for linking Aadhaar with PAN several times, has finally issued a late fees notification in which a 500 penalty would be imposed for the first three months beginning April 1, 2022, and then a 1,000 penalty.
According to Neeraj Agarwala, Partner at Nangia Andersen LLP, it is now required to link the Aadhaar number with the PAN in order to execute income tax-related duties such as filing reports on income.
He also mentioned that for individuals who do not have access to the income tax system, the connection procedure is made available by SMS.