Home / Money / Personal Finance /  PAN card holders may get fined up to 10,000 after 31st March. Details here

Aadhaar PAN link: PAN card holders are advised to link their Permanent Account Number (PAN) with their Aadhaar card number by 31st March 2022. Failing to do this by given deadline will not only lead to their PAN card becoming invalid but it would require a fee of 1,000 for PAN Aadhaar linking. The problem of the PAN card holder won't end here only as the individual won't be able to invest in mutual funds, stocks, open a bank account, etc. where furnishing a PAN card is must. Apart from this, if the person furnishes the PAN Card, which is no more valid, then under Section 272N of the Income Tax Act 1961, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees.

Speaking on the importance of PAN Aadhaar link deadline; Amit Gupta, MD at SAG Infotech — a SEBI-registered income tax solution provider company said, "Earlier, the rules pertaining to the Aadhaar PAN linking had no provision of penalty. According to the new law, failure to link the two IDs would result in the PAN becoming invalid, which further means that one cannot perform financial transactions requiring PAN details. These include filing an income tax return and opening a bank account. Also, the said individual might have to pay a higher TDS amount, plus a penalty of 10,000 will be imposed as per section 272B of the Income Tax Act, if the person fails to quote PAN as and when needed." He said that furnishing an invalid PAN would also lead to the penalty of 10,000. So, it's important for a PAN card holder to seed its PAN card with its Aadhaar card and avoid any kind of penalty after failing to meet PAN Aadhaar linking deadline.

PAN card holders are also advised to note that failing to meet PAN Aadhaar linking deadline, they will have to pay up to 1,000 penalty for late seeding of PAN with Aadhaar. As per the newly inserted Section 234H of Income Tax Act (in March 2021 via Finance Bill), "Without prejudice to the provisions of this Act, where a person is required to intimate his Aadhaar number under sub-section (2) of section 139AA and such person fails to do so on or before such date, as may be prescribed, he shall be liable to pay such fee, as may be prescribed, not exceeding one thousand rupees, at the time of making intimation under sub-section (2) of section 139AA after the said date."

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout