The Income Tax Department had earlier made an announcement that those who hold a PAN card will be required to link it with their Aadhaar. Following the announcement, there has been a new update. According the update, the PAN cards that are not linked to Aadhaar will not only be declared inoperative, the card holders will also face consequences.
What is the last date to link PAN and Aadhaar?
As per the deadline set by the government, the last date to link PAN and Aadhaar is March 31, 2022. If a person fails to follow these regulations, he or she will be held accountable.
What will be the consequences of not linking PAN with Aadhaar?
If a person fails to link their PAN and Aadhaar, their PAN card will be declared inoperative. With an inoperative Pan card, it will be assumed that the PAN has not been furnished as per the rule of law. Hence, cardholders will have to pay a penalty of Rs 10,000 under Section 272B of the Income Tax Act.
In such a situation, if a bank account created with a non-functional PAN has transactions that put it under the income tax purview, complications may follow. One should not be penalised if they use their PAN card as an identification verification for non-tax purposes, such as opening a bank account, applying for a driver’s licence, and so on.
However, once the PAN and Aadhar are linked, the PAN becomes operative. No penalties will be issued beyond that date. Those with inoperative PAN cards must keep in mind that they do not need to reapply for a new PAN PAN card since the PAN card becomes valid once the linking is completed.
How can cardholders confirm if their PAN and Aadhaar numbers are linked?
PAN card holders can visit www.incometaxindiaefiling.gov.in/aadhaarstatus to check whether their PAN and Aadhaar are linked. They will be required to enter their PAN and Aadhaar Numbers. Cardholders will be able to check the status of their PAN-Aadhaar link by clicking on the View Link Aadhaar Status option.