New Delhi: The Central Board of Direct Taxes (CBDT) has said that taxpayers who do not link their Permanent Account Number (PAN) with a Unique Identification Number (Aadhaar) by March 31, 2022, will have to pay a fine ranging from Rs 500 to Rs 1,000. However, such PANs will be operational till March 2023, and taxpayers will be able to use them for filing income tax returns, getting refunds,s and other income tax work.
The last date for linking PAN with Biometric Aadhaar is March 31, 2022. The CBDT said in a notification that late reporting of Aadhaar will attract a late fee of Rs 500. This penalty fee will be for the next three months i.e. till June 30, 2022. After that, the taxpayers will have to pay a fine of Rs 1,000. On the other hand, in the case of non-linking of PAN with Aadhaar, PAN will become inactive after March 31, 2023.
A late fee will also have to be paid
According to the notification issued by the CBDT on March 29, 2022, an opportunity is being given to the taxpayers for relief. They will be able to provide their Aadhaar details for Aadhaar-PAN linking to the concerned authority by March 31, 2023. Along with such information, they will also have to pay a late fee.
The CBDT said in a statement that on March 31, 2023, the PAN of the taxpayers who have not provided information about Aadhaar, will continue to file income tax returns, get refunds under the law. But after March 31, 2023, the PAN of these taxpayers will become inactive.
43.34 crore PAN linked with Aadhaar
As per the data, 43.34 crore PANs have been linked with Aadhaar till January 24, 2022. So far 131 crore Aadhar cards have been issued. The linking of PAN-Aadhaar will help in eliminating ‘duplicate’ PAN and prevent tax evasion.
It is fine as well
Amit Maheshwari, Tax Partner, AKM Global, said that the government has finally released the information on the penalty amount after several times the deadline for linking PAN with Aadhaar. The penalty amount will be Rs 500 for three months before April 1, and Rs 1,000 after that.
“Taxpayers are advised to check their income tax portal and ensure that their Aadhaar and PAN are linked,” he said. Because in some cases they do not have Aadhaar. ,
Many disadvantages of not connecting to the pan
Neeraj Aggarwal, Partner, Nangia Andersen LLP said, “It is now mandatory to link Aadhaar numbers with PAN for completing income tax-related tasks like filing an income tax return.” PAN can be used to open a bank account, purchase immovable property, or be used as proof of identity. Taxpayers who do not link PAN with Aadhaar will face many challenges.
He said that once your PAN is deactivated, taxpayers will not be able to do financial transactions that require PAN. These include mutual funds etc. Also, tax deduction at source (TDS) will be applicable to them at a higher rate and they will have to pay a penalty under section 272B. “For those who do not have access to the Income Tax portal, the ‘linking process’ is made available through SMS,” Agarwal said.
