Non-linking of PAN-Aadhaar by March 31 to attract penalty

New Delhi, March 30 (SocialNews.XYZ) Non-linking of PAN with Aadhaar number by March 31, 2022 would attract a penalty, the Finance Ministry said on Wednesday.

As per the Ministry, non-linking of PAN-Aadhaar will lead to a penalty of Rs 500 up to three months from April 1, 2022 and a fee of Rs 1,000 thereafter. Nevertheless, the non-linked PAN will remain operational till March 31, 2023.

Under the provisions of the Income Tax Act, 1961, it is mandatory to link PAN and Aadhar on or before March 31, 2022.

"On failure to do so... PAN shall become inoperative and all procedures in which PAN is required shall be halted. The PAN can be made operative again upon intimation of Aadhaar to the prescribed authority after payment of a prescribed fee," a Ministry statement said.

"In order to mitigate the inconvenience to the taxpayers, as per Notification No 17/2022 dated March 29, 2022, a window of opportunity has been provided to the taxpayers upto March 31, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions."

As a result, taxpayers will be required to pay a fee of Rs 500 up to three months from April 1, 2022 and a fee of Rs 1,000 after that, while intimating their Aadhaar.

"However, till March 31, 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc."

"After March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers."

Source: IANS