Double Penalty if PAN Card-Aadhaar Linking Done After 30 June

The government had extended the deadline to link the Aadhaar number with the PAN card till 31 March 2022. It further extended the deadline to 31 March 2023. However, taxpayers can link their PAN cards with Aadhaar numbers after 1 April 2022 with a penalty.

Penalty Imposed for Linking PAN-Aadhaar After 30 June 2022

The Central Board of Direct Taxes (CBDT) issued a circular stating that the taxpayers linking their PAN card with Aadhaar after 1 April 2022 but within 30 June 2022 will have to pay a late penalty of Rs.500. However, taxpayers linking on or after 1 July 2022 will have to pay a fine of Rs.1,000. 

Thus, you can link your PAN card with the Aadhaar number by paying a late fee of Rs.500 by this month’s end. If you link your PAN card with Aadhaar after 1 July, you need to pay a penalty of Rs.1,000. 

The taxpayers’ PAN cards not linked with Aadhaar will remain functional for one more year, i.e. until 31 March 2023, for claiming refunds, filing ITR and other IT procedures.

How to Pay the Penalty Amount?

The Income Tax (IT) department stated that the taxpayers could pay the penalty for linking PAN and Aadhaar through Challan No.ITNS 280 with major head 0021 and minor head 500 through a tweet on its official Twitter account.

Why is PAN-Aadhaar Linking Necessary?

Your PAN will become inoperative after 31 March 2023 if you fail to link it with your Aadhaar. Once the PAN becomes inactive, you cannot open a bank account, file income tax returns, invest in mutual funds etc.

The IT department can impose a penalty of Rs.10,000 under section 272B for not having an active PAN card. Thus, if the PAN becomes inoperative after 31 March 2023 due to non-linking it with Aadhaar, the IT department could also impose a penalty of Rs.10,000.

How to Link a PAN Card With Aadhaar?

The IT department offers different ways to link PAN with Aadhaar. First, you need to pay the penalty on the Protean (NSDL) portal and then submit the Aadhaar-PAN linking request. The process to submit the Aadhaar-PAN linking request online after paying the fine is as follows:

• Visit the official income tax department website.
• Select the ‘Link Aadhaar’ option under the ‘Quick Links’ section.
• A message of payment details will be displayed on the screen.
• Click on the ‘Continue’ button. Enter the PAN, Aadhaar number, and mobile number and click on the ‘Link Aadhaar’ button.
• Enter the OTP sent to your mobile number and click on the ‘Validate’ button, and your request for linking Aadhaar will be submitted.

You can also link the PAN card with your Aadhaar by sending an SMS or visiting the UTIIL/NSDL offices. Thus, the taxpayers who have not yet linked their PAN card with Aadhaar can do it within this month, or else they will have to pay a double penalty for the same.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@clear.in