PAN-Aadhaar Linking: With less than a month left to link your Permanent Address Number, or PAN, with your Aadhaar, it is important that you know what might happen to you if you do not comply with this deadline. Linking your PAN with Aadhaar number is one of the most important tasks the government wants you to do by March 31, that is next Thursday. Though, the Central Board of Direct taxes, or CBDT, has deferred the last date to Link Aadhaar and PAN multiple times, the department has made it clear that completing the task is mandatory.
“The Central Government, in continuation of its commitment to address the hardship being faced by various stakeholders on account of the Covid-19 pandemic, has, on consideration of representations received from various stakeholders, decided to extend timelines for compliances under the Income-tax Act,” said the CBDT in a notification.
“Time limit for intimation of Aadhaar number to the Income tax Department for linking of PAN with Aadhaar has been extended from 30th September, 2021 to 31st March, 2022,” it added.
A slew of penalties may come your way if you do not link PAN Aadhaar by March 31, including your PAN becoming inoperative. When your PAN becomes inoperative, it is similar to not having the document at all.
Here are some of the issues you are likely to face if you fail to link PAN-Aadhaar:
– The government has added 234H– a new section under the Income Tax Act, 1961. This enables the authorities to levy a penalty on the individual if the work is not done within the due date. However, this penalty cannot go beyond Rs 1,000, the CBDT has clarified. But that is not the only fine you will face, furnishing an invalid PAN will attract a fine of Rs 10,000.
– In case you do not have an active PAN, you will not be able to carry out any work that requires the document. This includes all investments like bank account, mutual funds, stock market and other investments, where your KYC is needed to complete the transaction. Having an operative PAN is essential to complete the KYC process.
– If your PAN is not seeded with your bank account, you will have to give double TDS (Tax Deduction at Source). If your bank account is seeded with PAN, a 10 per cent TDS is chargeable.
– If you link your PAN and Aadhaar after the due date, the government is eligible to levy a fine on the process at the time of linking, the CBDT has said. This is why, it is advisable to link PAN Aadhar before March 31, 2022.
There are two ways in which you can link your PAN with your Aadhaar card. One way is to do it via SMS and the other is to do it through the Income-Tax Department’s official portal.
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