1 min read.Updated: 25 Jun 2021, 06:48 PM ISTRenu Yadav
As per Section 139AA, it is mandatory for every person to quote Aadhaar number in their income tax return and the application for the allotment of PAN, provided they are eligible to get Aadhaar
The government has announced various relief measures for the taxpayers including the extension of PAN and Aadhar linking to 30 September from 30 June. In case you fail to link PAN and Aadhar your PAN becomes inoperative.
As per Section 139AA, it is mandatory for every person to quote Aadhaar number in their income tax return and the application for the allotment of PAN, provided they are eligible to get Aadhaar.
Apart from this every person who has been allotted PAN as on 1 July 2017 and who is eligible to obtain Aadhaar number is required to link his PAN to Aadhar. In case a person fails to do so within deadline, his or her PAN card will become inoperative.
In case the PAN becomes inoperative, the person will have to face the consequences of the same. As per rule 114AAA, where a person is required to furnish or intimate his PAN and in case his or PAN become inoperative, it will be deemed that he or she has not furnished PAN and therefore bear the consequences of the same. Under various provisions of the Income Tax Act if a person doesn’t furnish PAN or gives an inoperative PAN he or she may have to bear the consequences such as paying higher TDS (tax deducted at source) or TCS (tax collected at source), may not be able to file income tax return and may face the consequences of not filing the tax return.
In the Finance Bill 2021, the government has also introduced an amendment under which a person will be liable to pay a late fee of up to ₹1000 in case of non-linking of PAN with Aadhaar.
"Therefore, now after the latest extension, the person can link PAN-Aadhaar by 30-09-2021, if he fails to link PAN-Aadhaar by 30-09-2021, he shall be liable to pay a fee, maximum of Rs. 1,000. This fee shall be in addition to the other consequences the person has to face if PAN becomes inoperative due to non-intimation of Aadhaar," said Tarun Kumar, a Delhi-based chartered accountant.