People who still have not linked their Permanent Account Numbers (PAN) with their Aadhaar card number will fall in a big problem. They may face two major problems- one is the cancellation of their PAN Card, and the other is the penalty if the PAN Card holder uses the cancelled card.
For not linking their permanent account number (PAN) card with Aadhaar card before March 31, income tax assesses will be fined for Rs 10,000. The income tax department, which had previously extended the date of linking the PAN with Aadhaar to 31st March 2021, will now impose the penalty for having a PAN not linked with Aadhaar, considered as inoperative PAN.
Last year, the income tax department clarified that all unlinked PAN cards will be considered “inoperative”. Now, it has issued a new notification stating that action will be taken against inoperative PAN cardholders under the Income Tax Act for not furnishing operative PAN.
Apply for PAN on the basis of Aadhaar instantly
According to the Section 272B: “If a person, who is required to quote his permanent account number or Aadhaar number, as the case may be, in documents referred to in sub-section (6A) of section 139A or authenticate such number in accordance with the provisions of the said sub-section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.”
In other words, when a PAN becomes inoperative, the law assumes that it has not been furnished/ quoted and that a penalty of Rs 10,000 may be imposed.
Apply for Physical PAN
In 2018, Supreme Court of India held Aadhaar constitutionally valid and held that the biometric Identification will remain mandatory for the filing of income tax returns and PAN card allotments.
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Section 139 AA(2) of the Income Tax Act states that every person who has PAN as on 1 July 2017 and is eligible to obtain Aadhaar card, must intimate the Aadhaar number to the tax authorities.
Read More –Easy way to link Pan with Aadhar
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How to link pan card with Addhar card?