Utility: Important information for PAN card holders, from March 31 onwards, a fine of Rs 10000 may be imposed due to this
Aadhaar PAN Link: PAN card holders are advised to link their Permanent Account Number (PAN) with their Aadhaar card number by March 31, 2022. Failing to do so by the given time limit will not only invalidate their PAN card but will also incur a fee of ₹1,000 for PAN Aadhaar linking thereafter. The problem of a PAN cardholder will not end here as the individual will not be able to invest in mutual funds, stocks, open bank accounts, etc., where it is necessary to present a PAN card. Further, if the person produces a PAN card that is no longer valid, then under section 272N of the Income Tax Act 1961, the Assessing Officer may direct that such person shall pay, as a penalty, an amount of ten thousand.
Speaking on the importance of the PAN Aadhar link deadline; Amit Gupta, MD, SAG Infotech, a SEBI-registered income tax solutions provider, said, “Earlier, there was no provision for a penalty in the rules related to Aadhaar PAN linking.
As per the new law, failure to link two IDs will result in PAN. Being invalid means that one cannot carry out financial transactions that require PAN details. These include filing income tax returns and opening a bank account. Also, paying more TDS amount to the said person may be required, as well as a fine. The penalty of ₹10,000 will be levied as per section 272B of the Income Tax Act if the person fails to quote PAN, as and when required." He said that furnishing of invalid PAN will also attract a fine of Rs 10,000.
According to the newly inserted section 234H of the Income Tax Act (via the Finance Bill in March 2021), “without prejudice to the provisions of this Act, where a person has to furnish his Aadhaar number under sub-section (2) of section 139AA is required to be informed.