PAN-Aadhaar link status alert! If your PAN Card or Permanent Account Number Card is not linked to your Aadhaar Card, it may lead to a penalty of Rs 10,000. The government has given a deadline of March 31, 2020, for linking of the PAN Card with the Aadhaar Card. Failing to do so within the given timeline is likely to result in a penalty. The Income Tax Department has already announced that the Permanent Account Number, if not linked with Aadhaar, will become inoperative. “The permanent account number of such person shall become inoperative immediately after the said date for the purposes of furnishing, intimating or quoting under the Act,” said a notification by the Ministry of Finance.
What will happen if your PAN becomes inoperative? To this, Archit Gupta, Founder and CEO of ClearTax, told Financial Express Online that an individual may not be able to open a bank account or sell/buy a property, make investments without PAN. “Using a non-operative PAN is the same as not having a PAN. You may face higher rates of TDS and may be barred from undertaking financial transactions,” he said.
Usually what happens is when PAN card of an individual is inoperative, it is assumed that the individual’s PAN has not been quoted or furnished. And since this does not comply with the law, a penalty of Rs 10,000 may be applied according to Section 272B of the Income Tax Act.
The government had earlier extended the date to link both the documents several times. It was initially supposed to be completed by March 31, last year but got extended till September 30. The date was moved the third time and was extended till December 31. As of now, the last date is of March-end only.
For those who do not know how to link PAN with Aadhaar, visit this link. Fill the details and complete the linking process directly on the e-filing website: https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/LinkAadhaarHome.html?lang=eng