Aadhaar-PAN-Link

New Delhi: The Central Board of Direct Taxes (CBDT) has recently extended the PAN-Aadhaar linking deadline till March next year for the convenience of taxpayers. However, if you do not link these two important documents soon, you will be liable to fine. The government has been encouraging citizens to link their Permanent Account Number (PAN) with Aadhaar, a 12-digit identification number, since 2017. With effect from April 1, 2017, the government has inserted 139AA in the IT Act, making it mandatory. The taxpayer has to quote his Aadhaar in the application form for PAN and return of income.

 

In order to avoid duplicate or fake PAN, the Income Tax Department has decided to make PAN-Aadhaar mandatory. However, the deadline for linking PAN with Aadhaar has been extended on several occasions and now the latest due date has been set as March 31, 2023. To ensure that taxpayers are giving due importance to PAN-Aadhaar linking, the department has made an announcement. Many penalties can be avoided or reduced only when the linking is done.

 

Here is how much penalty will be imposed if a person fails to link PAN with Aadhaar:

On March 30, the CBDT introduced a sub-section (2) under section 139AA. Under the new provisions of sub-section, the CBDT directs that a fine of Rs 500 be imposed “if such intimation is made within three months from the date specified in sub-section (2) of section 139AA.”

 

  • The new guidelines, which came into effect from April 1, 2022, state that a penalty of Rs 500 is applicable for PAN-Aadhaar linking within three months i.e. June 30, 2022.
  • Failure to do so after June 30 has increased the fine to Rs 1,000 in all other cases.

In another circular dated March 31, the CBDT said, “The Finance Act, 2021 inserted a new section 234H in the Act to complete the process of linking PAN-Aadhaar for identification of fake PANs. This section provides that where a person who is required to inform his Aadhaar under sub-section (2) of section 139AA, fails to do so on or before the notified date, he shall be liable to pay an amount exceeding one thousand rupees. shall be liable to pay the fee of Rs. , as may be prescribed, at the time of giving notice under sub-section (2) of section 139AA after the said date.”

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