Home / News / India /  PAN-Aadhaar linking not done yet? Get ready to pay a double penalty from today

Pan cardholders will now have to pay a 1,000 fine for not linking the PAN with their Aadhaar card. Prior to this, the penalty was 500. As per the newly inserted Section 234H of Income Tax Act (in March 2021 via Finance Bill), non-linking of PAN with Aadhaar would attract a penalty of up to 1,000, but such PAN cards will remain functional for one more year till March 2023 for filing ITR, claiming refunds and other I-T procedures. One can link PAN and Aadhaar after paying the late fee.

Aadhaar-Pan card linking: How to pay the late fee?

Fees to be paid by Challan No ITNS 280 with Major head 0021 (Income Tax Other than Companies) & Minor head 500 (Fee), according to the income tax department.

Why PAN-Aadhaar card linking is important?

If someone does not link the PAN card with the Aadhaar card, then their PAN card becomes inoperative. 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 a must. Apart from this, if the person furnishes the PAN Card, which is no more valid, then under Section 272B of the Income Tax Act 1961, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of 10,000.

Here's how to link a PAN card with an Aadhaar card via the I-T portal?

Step 1: Open the income tax e-filing portal: incometaxindiaefiling.gov.in

Step 2: Register on the portal. The PAN number will be the user ID.

Step 3: Log into the portal by entering your user id, password, and date of birth.

Step 4: A pop-up window will appear to link PAN with Aadhaar.

Step 5: In case the window does not appear, go to 'profile settings' on the Menu bar and click on 'Link Aadhaar'.

Step 6: Verify the PAN details on the screen with the ones mentioned on Aadhaar.

Step 7: If the details match, then enter your Aadhaar number and click on the "link now" button.

Step 8: A message will inform you that Aadhaar has been successfully linked to your PAN.

Other methods you can link your PAN with Aadhaar:

  • People can also link PAN with Aadhaar card through egov-nsdl.co.in.
  • One can link through SMS. Type UIDPAN<12 digit Aadhaar><10 digit PAN>. The message can be sent to 567678 or 56161.
  • Visit PAN service centres: A form named ‘Annexure-I’ needs to be filled and submitted along with a copy of the PAN card and Aadhaar card. This will be a paid service.

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
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout