Missed PAN-Aadhaar linking? Here is the penalty you will have to pay
Aadhaar Update
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CBDT issues a new notification stating that any PAN not linked with Aadhaar would become inoperative after 31st March 2023. The last date for PAN-Aadhaar linking was 31st March 2022. The individual will be required to pay the penalty for linking the PAN with Aadhaar after this due date. 

As per the notification, if the PAN-Aadhaar linking is done between 1st April to 30th June, the individual will be liable to pay a penalty of Rs 500. But if the PAN-Aadhaar linking is done after 30th June 2022, a penalty of Rs 1,000 will be payable by the individual. Previously, there was no law on the penalty charged if the two documents were not linked by the due date.

In the notification, the income tax department clarified that non-linking of PAN with Aadhaar by 31st March 2023 would attract a penalty up to Rs 1,000. Still, such PAN will remain operative until 31st March 2023 for filing income tax returns, claiming refunds and other income tax compliances. 

The Income-tax department offers various ways to link PAN with Aadhaar. It can be done through the income tax e-filing portal, manually by visiting NSDL/UTIIL offices, and by SMS.

For any clarifications/feedback on the topic, please contact the writer at namita.shah@cleartax.in

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