PAN-Aadhaar linking: You could be fined ₹1,000, if you miss the deadline

Is your Permanent Account Number (PAN) linked to your Aadhaar card? If not, then do it now as the deadline to link both the documents ends on 31 March. If you fail to link your PAN card with your Aadhaar card within the deadline, then the income tax department might impose a penalty on you. You will not only be liable to pay a fine of up to ₹1,000 but your PAN will also become invalid. While passing the Finance Bill, 2021, the government inserted a new section (Section 234H) into the Income Tax Act, 1961 for penalising individuals who do not link PAN with the Aadhaar card by 31 March 2021.

Other than the fine, an individual’s PAN will also become inoperative.

As per Section 139AA, it is mandatory for every person to quote the Aadhaar number in their income tax return and the application for the allotment of PAN, provided they are eligible for Aadhaar.

How to link PAN with Aadhaar card

Go to the income tax department's e-filing portal.

Click on the Link Aadhaar section on the left.

You need to fill PAN number, Aadhaar number and name.

Fill in the CAPTCHA.

Click at the 'Link Aadhaar' option and your PAN Aadhaar Linking will get complete.

The I-T department will validate your name, date of birth and gender against Aadhaar details after which the linking will be done.

Having a PAN card is mandatory for several purposes like opening of a bank account, buying mutual funds or shares and even making cash transactions of over ₹50,000.