Taxpayers not linking PAN with Aadhaar by March 31 could be required to pay a penalty starting from Rs 500 to Rs 1,000, the earnings tax division has mentioned.
The final date for linking Permanent Account Number (PAN) with biometric Aadhaar is March 31, 2022. Not adhering to the deadline will result in PAN changing into inactive.
In a notification, the Central Board of Direct Taxes (CBDT) mentioned delayed intimation of Aadhaar will appeal to a late price of Rs 500 in circumstances the place it’s linked throughout the subsequent 3 months or by June 30, 2022.
Thereafter, Rs 1,000 must be paid by taxpayers as penalty.
Non-linking of PAN with Aadhaar will result in PAN changing into inoperative after March 31, 2022. It will be reoperationalised on cost of penalty, mentioned a CBDT notification dated March 29.
AKM Global, Tax Partner, Amit Maheshwari mentioned the federal government after extending the deadline a number of instances for linking Aadhaar with PAN has lastly give you a late charges notification the place Rs 500 penalty could be attracted for the primary three months starting April 1, 2022 and thereafter Rs 1,000.
“Any failure may lead to PAN becoming inoperative, which deems that a person had no PAN for income-tax purposes. It is advisable for taxpayers to check their income tax portal and ensure that Aadhaar and PAN are linked. NRIs may have some concerns since in some cases they do not have Aadhaar,” Maheshwari mentioned.
Nangia Andersen LLP Partner Neeraj Agarwala mentioned it’s now obligatory to hyperlink the Aadhaar quantity with PAN to finish earnings tax-related duties resembling submitting returns on earnings.
While PAN is used for varied transactions like opening a checking account, buy of immovable property or proof of id, inactive PAN will set off domino impact and particular person who haven’t linked their Aadhaar might face a number of challenges.
“Once your PAN becomes inactive, the person will be restricted from doing financial transactions (where quoting of PAN is mandatory like mutual funds), subjected to TDS at higher rates and penalty under section 272B,” Agarwala mentioned.
For those that should not have entry to earnings tax portal, the linking course of is made out there by means of SMS additionally, he added.
