PAN card holders could get fined as much as ₹10,000 after thirty first March. Details right here

Aadhaar PAN hyperlink: PAN card holders are suggested to hyperlink their Permanent Account Number (PAN) with their Aadhaar card quantity by thirty first March 2022. Failing to do that by given deadline won’t solely result in their PAN card changing into invalid however it will require a payment of ₹1,000 for PAN Aadhaar linking. The drawback of the PAN card holder will not finish right here solely as the person will not have the ability to put money into mutual funds, shares, open a checking account, and many others. the place furnishing a PAN card is should. Apart from this, if the individual furnishes the PAN Card, which is not any extra legitimate, then below Section 272N of the Income Tax Act 1961, the Assessing Officer could direct that such individual shall pay, by the use of penalty, a sum of ten thousand rupees.

Speaking on the significance of PAN Aadhaar hyperlink deadline; Amit Gupta, MD at SAG Infotech — a SEBI-registered earnings tax resolution supplier firm stated, “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 stated that furnishing an invalid PAN would additionally result in the penalty of ₹10,000. So, it is essential for a PAN card holder to seed its PAN card with its Aadhaar card and keep away from any form of penalty after failing to satisfy PAN Aadhaar linking deadline.

PAN card holders are additionally suggested to notice that failing to satisfy PAN Aadhaar linking deadline, they should pay as much as ₹1,000 penalty for late seeding of PAN with Aadhaar. As per the newly inserted Section 234H of Income Tax Act (in March 2021 by way of 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.”

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