Today is the last date to link Aadhaar card with PAN card. The government has extended the deadline for PAN-Aadhaar linking several times and currently the deadline is 31 March 2021. By this deadline, if you do not link PAN and Aadhaar, then your PAN will be inoperative, and you will also have to pay a fine. Failure of PAN and Aadhaar link may lead to a fine of up to Rs 1000. The penalty has been provided under the new section 234H added to the Income Tax Act, 1961. The government has done this through the Finance Bill 2021 passed by the Lok Sabha on 23 March. Under the new provision added to the Income Tax Act, the government will decide the amount of penalty for non-linking of PAN and Aadhaar. This fine will not exceed Rs 1000.
The rule is coming into force from 1 April
Remember that the budget proposals made under Finance Bill 2021 will come into effect from April 1. Therefore, if the government does not extend the deadline of March 31 for linking PAN and Aadhaar and you have not done this PAN-Aadhaar linking till March 31, then you may have to pay a fine of up to Rs 1000 from April 1.
Provision for linking PAN and Aadhaar
Under section 139AA, it is mandatory for every person who is eligible to get Aadhaar to mention their Aadhaar number in their application for income tax return and PAN card. At the same time, for those people who had been PAN allotted till 1 July 2017 and who are eligible to get the Aadhaar number, it is necessary to link the PAN with Aadhaar. If the person does not do so, then his PAN card will be inoperative.
PAN is fine even after inactivity
Earlier there was no penalty for not having PAN and Aadhaar link but there is already a penalty for inoperative PAN. Through the inoperative PAN, the person will not be able to do such financial transactions, where it is necessary to mention the PAN like opening of bank account, ITR filing etc. Apart from this, more TDS will also have to be paid. Also, as per the rules, if your PAN card becomes inoperative then it will be assumed that the PAN is not furnished / quoted as per the law. In such a situation, you can be fined Rs 10,000 under Section 272B of the Income Tax Act.