PAN-Aadhaar card linking: If you do not do this work before March 31, then you will be fined Rs 10000!
The government has set March 31, 2022, as the deadline for linking PAN cards with Aadhaar. If you are a PAN cardholder and you fail to link it with your Aadhar card within the mentioned time limit then you may have to pay a fine of Rs 10,000 to the Income Tax Department for using an inactive Permanent Account Number.
Earlier, the Income Tax Department had earlier announced that any PAN that is not linked will be declared "inactive". Now, in its latest notification, the IT department has clearly mentioned that such PAN cardholders will have to face the consequences under the Income Tax Act.
What if your PAN card is inactive?
When your PAN becomes inoperative, it is deemed that the PAN required by law has not been furnished and a penalty of Rs 10,000 may be applicable as per section 272B of the Income Tax Act.
However, if you use your PAN card as identity proof for purposes not related to tax such as opening a bank account, applying for a driving license, etc., the penalty should not be imposed.
But, complications can arise if a bank account opened using a non-functional PAN has transactions that bring it under the purview of income tax. Suppose, if you deposit or withdraw cash above ₹50,000 then a PAN card will be required.
However, once you have linked your PAN and Aadhaar, PAN is activated, and no penalty will be applicable after the date of linking. Inactive PAN cardholders should remember that they need not apply again for a new PAN card as once linked the PAN card becomes valid once again.
How to check whether your PAN and Aadhar are linked?
Follow these easy steps to check linking status
Go to www.incometaxindiaefiling.gov.in/aadhaarstatus
Enter PAN and Aadhaar Number
Click on 'View Link Aadhaar Status'
Linking status is displayed on the next screen