homepersonal finance NewsWhy you must link your PAN card with Aadhaar by this date

Why you must link your PAN card with Aadhaar by this date

By CNBCTV18.com Mar 16, 2022 4:21:57 PM IST (Updated)

In case the PAN becomes inoperative, and the individual fails to furnish the PAN, then he/she may have to pay a fine of Rs 10,000.

If your PAN and Aadhaar are not linked by March 31, then your PAN will become invalid, and you won’t be able to make any PAN-linked transaction. You may also be fined Rs 1,000 for linking the documents after the deadline. In case the PAN becomes inoperative, and the individual fails to furnish the PAN, then he/she may have to pay a fine of Rs 10,000.

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An invalid PAN or a PAN that has not been linked with Aadhaar by the end of the deadline will disable the individual from performing transactions like opening of bank account, investing in shares, mutual funds etc. or wherever a PAN is mandatory such as lower deduction of tax from salary, etc.
A penalty will be levied under section 234H of the Income-tax Act for linking the documents after the deadline. The government is yet to announce the amount, but it will not exceed Rs 1,000, reports suggest.
Also, as per tax experts, failure to furnish PAN wherever it is required may attract a penalty of Rs 10,000 under the section 272B of the Income Tax Act, 1961, as reported by the Economic Times.
In the 2017 Budget, the law to link PAN with Aadhaar was introduced. According to 139AA section of the Income Tax Act, any individual who has been allotted a PAN card and eligible to obtain an Aadhaar number must link his/her PAN with Aadhaar.
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