The Deadline to link PAN with Aadhar card is March 31, 2022
The deadline to link PAN with Aadhar card is March 31, 2022
Central Board of Direct Taxes (CBDT) has announced that the deadline to link PAN to with Aadhar card is March 31, 2022. If a person does not link his or her PAN with his or her Aadhaar number by this date, there will be a two-tier penalty if they do so after April 1, 2022.
According to a notification issued by the Central Board of Direct Taxes (CBDT) on March 29, 2022, if the PAN-Aadhaar link is completed within three months of the deadline, a fee of Rs 500 will be imposed. This means that if a PAN-Aadhaar link is made between April 1, 2022, and June 30, 2022, the individual will be charged Rs 500 as a penalty for doing so. If the PAN-Aadhaar link is completed after three months, a penalty of Rs 1,000 would be imposed.
What is a PAN card?
The Income Tax Department issues a ten-digit unique alphanumeric number known as a Permanent Account Number (PAN). This is an important financial document.
What should PAN be linked to besides Aadhar?
Having an inoperative PAN, according to industry experts, is the same as not having one at all. You will be unable to carry out any work that requires the document if you do not have an active PAN. This includes any investment where your KYC is required to complete the transaction, such as a bank account, mutual funds, stock market, and other investments. To complete the KYC process, you must have an active PAN. Furthermore, if your PAN is not linked to your bank account, you will be required to pay double TDS (Tax Deduction at Source). If your bank account is seeded with your PAN, you will be charged a 10% TDS.
The government has also inserted 234H into the Income Tax Act of 1961, which is a new section. If the work is not completed by the deadline, the authorities can impose a penalty on the individual.
The Central Board of Direct Taxes hereby makes the following rules to alter the Income-tax Rules, 1962, in the exercise of the authorities given by sections 139AA and 234H read with section 295 of the Income-tax Act, 1961 (43 of 1961), namely:
The Income-tax (Third Amendment) Rules, 2022
The CBDT vide notification dated 29th March 2022 has issued the Income-tax (Third Amendment) Rules, 2022 further amending the Income-tax Rules, 1962. Through this amendment, a new sub-rule (5A) shall be inserted in rule 114. This new rule will take effect on April 1, 2022, on the first day of the month.
Income-Tax (Third Amendment) Rules, 2022 is reproduced here for reference:
The following sub-rule shall be introduced in rule 114, after sub-rule 5, of the Income-tax Rules, 1962 (hence referred to as major rules):
“(5A) Every person who is required to intimate his Aadhaar number to the prescribed authority in the prescribed form and manner under the provisions of sub-section (2) of section 139AA fails to do so by the date referred to in the said sub-section shall be liable to pay, as a fee, an amount equal to, –
- 500 rupees if the intimation is made within three months of the date referred to in sub-section (2) of section 139AA;
- 1000 rupees in all other situations.”
The official notification of CBDT is attached here for reference:
Deadline to link PAN with Aadhar cardWhat happens if PAN-Aadhaar is not linked?
According to the CBDT’s press release, “To alleviate the inconvenience to taxpayers, under Notification No.17/2022 dated March 29, 2022, taxpayers have until March 31, 2023, to notify the prescribed authorities for Aadhaar-PAN linkage without risking sanctions. As a result, taxpayers would be charged a price of Rs. 500 for the first three months after April 1, 2022, and a fee of Rs. 1000 after that, when informing their Aadhaar.”
As a result, your PAN will be valid till March 31, 2023, and an unlinked PAN-Aadhaar can be linked for a fee.
It’s worth noting that the income tax authorities can assess a penalty of up to Rs 10,000 for not having a current PAN under section 272B.
For more details on the Consequences of Failure to link PAN with Aadhaar, click here
How can I see if Pan is linked to my Aadhaar number?
Follow the procedures below to see if your PAN has already been connected to your Aadhaar number.
- Go to incometax.gov.in and fill out the form.
- In the quick links section, select Link Aadhaar Status.
- In the box that appears on your screen, enter your Pan and Aadhaar number.
- Select View Link Aadhaar Status? from the drop-down menu.
A pop-up will display confirming whether or not your PAN is linked to your Aadhaar number.
How can I link my Aadhaar card to my PAN card online?
- Go to incometax.gov.in, the official website of the Income Tax Department.
- First-Time User- If you are a first-time user, click on Register here.
- Complete the OTP verification process.
- Log in using your PAN details and create a password.
- If you’ve already signed up, go right to the website and log in.
- Scroll to the bottom of the screen and pick the Link Aadhaar option.
- Fill in your Aadhaar number, PAN number, and registered name.
- Choose the option to join the two numbers together.
Update on 23/12/2022
CBDT announced that Unlinked PAN Will Become Inoperative From 01.04.2023. As per sec 139AA of the income tax act 1961, every person who has been allotted PAN as of 01.07.2017 and who is eligible to obtain an Aadhaar Number has compulsorily linked their Aadhaar and pan on or before 31st March 2023 With paying the late fee as per Circular No. 7/2022 dated 30/3/2022.
circular-no-7-2022