new Delhi . The Central Board of Direct Taxes (CBDT) has said that taxpayers who do not link Permanent Account Number (PAN) with Unique Identification Number (Aadhaar) by March 31, 2022 will have to pay a fine ranging from Rs 500 to Rs 1,000. However, such PANs will be operational till March 2023 and taxpayers will be able to use them for filing income tax returns, getting refund and other income tax work.
The last date for linking PAN with Biometric Aadhaar is March 31, 2022. The CBDT said in a notification that late reporting of Aadhaar will attract a late fee of Rs 500. This penalty fee will be for the next three months i.e. till June 30, 2022. After that the taxpayers will have to pay a fine of Rs 1,000. On the other hand, in case of non-linking of PAN with Aadhaar, PAN will become inactive after March 31, 2023.
Late fee will also have to be paid
According to the notification issued by the CBDT on March 29, 2022, an opportunity is being given to the taxpayers for relief. They will be able to provide their Aadhaar details for Aadhaar-PAN linking to the concerned authority by March 31, 2023. Along with such information, they will also have to pay a late fee.
The CBDT said in a statement that on March 31, 2023, the PAN of the taxpayers who have not furnished Aadhaar details will continue to file income tax returns, get refund under the Act. But after March 31, 2023, the PAN of these taxpayers will become inactive.
43.34 crore PANs have been linked with Aadhaar
According to the data, till January 24, 2022, 43.34 crore PANs have been linked with Aadhaar. So far 131 crore Aadhar cards have been issued. The linking of PAN-Aadhaar will help in eliminating ‘duplicate’ PAN and prevent tax evasion.
AKM Global’s tax partner Amit Maheshwari said that the government has finally released the information on the penalty amount after extending the deadline for linking PAN with Aadhaar several times . The penalty amount will be Rs 500 for three months before April 1, and Rs 1,000 after that.
“Taxpayers are advised to check their income tax portal and ensure that their Aadhaar and PAN are linked,” he said. Because in some cases they do not have Aadhaar. ,
Many Disadvantages of Not Linking with PAN:
It is now mandatory to link Aadhaar number with PAN for completing income tax related tasks like filing income tax returns, said Neeraj Agarwal, Partner, Nangia Andersen LLP. Using PAN Bank Account. Opening, purchase of immovable property or as proof of identity. Taxpayers who do not link PAN with Aadhaar will face many challenges.
He said that once your PAN is deactivated, taxpayers will not be able to do financial transactions that require PAN. These include mutual funds etc. Also, tax deduction at source (TDS) will be applicable on them at a higher rate and they will have to pay penalty under section 272B. “The linking process is made available through SMS for those who do not have access to the Income Tax portal,” Agarwal said.