PAN cardholders may be fined Rs 10000 for not linking PAN with Aadhaar by March 31
PAN card holders may have to pay a hefty fine amounting to Rs 10,000 if they fail to link their PAN cards with Aadhaar by March 31, 2020.
The Income Tax Department said in a fresh notification that those who fail to link their personal account number with their 12-digit biometric Aadhaar number before the set deadline, their PAN cards will become inoperative and they may face a fine up to Rs 10, 000 for using inoperative PAN cards.
Under Section 272B of the Income Tax Act, those found using invalid or operative PAN cards may face fine up to Rs 10,000. The Assessing Officer may direct such people to pay the penalty.
How will inoperative PAN cards become valid again?
The inoperative PAN cards will become valid and operative again as soon as the individual links it with his/ her Aadhaar card.
What will happen if the PAN card becomes inoperative?
The PAN card, which is not linked to Aadhaar after March 31, will not be valid for conducting financial transactions and may attract a penalty. It could, however, still be used as ID proof for non-tax purposes.
PAN card is important for those carrying out major financial transactions such as buying or selling a house, making investments or opening a bank account. Those not having a PAN may face higher rates of TDS and be barred from making financial transactions.
How to link PAN with Aadhaar?
You can link your PAN card with Aadhaar number by visiting the e-filing website of the income tax department or by sending an SMS to 567678 or 56161 in the prescribed format. Click here to know how to link PAN with Aadhaar.
The Central Board of Direct Taxes (CBDT) in a notification on February 13, 2020 stated that all Permanent Account Numbers (PAN) not linked with the Aadhaar by March 31, 2020 will become inoperative after the deadline.
The deadline for linking the PAN card with Aadhaar was extended several times in the past. However, the CBDT has said now that March 31 will be the final deadline to link the two cards and there will be no further extension for the same post the date.