Previously, the income tax administration stated that any PAN that is not linked will be labelled “inoperative.”
New Delhi: The government has set a March 31, 2022 deadline for linking PAN cards to Aadhaar. If you have a PAN card and do not link it to your Aadhar card by the deadline, you may have to pay a Rs 10,000 penalty to the income tax department for using an inoperative Permanent Account Number (PAN).
Previously, the income tax administration stated that any PAN that is not linked will be labelled “inoperative.” The IT department has now explicitly stated in its most recent notification that such PAN cards will face repercussions under the Income Tax Act.
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When your PAN becomes inoperative, it is considered that it was not supplied in accordance with the law, and a penalty of Rs 10,000 may apply under Section 272B of the Income Tax Act. However, using your PAN card as identity verification for non-tax purposes, such as opening a bank account or applying for a driver’s licence, should not result in a penalty.
However, if the bank account opened with a non-functional PAN has transactions that bring it inside the ambit of income tax, difficulties may occur. For example, if you deposit or withdraw more than 50,000, a PAN card will be necessary. However, once you link your PAN and Aadhaar, the PAN becomes operational, and no penalties apply after the linking date. Those who have inoperative PAN cards should remember that they do not need to reapply for a new PAN card because once the linkage is completed, the PAN card becomes valid again.
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To verify the status of linking, follow these simple steps. www.incometaxindiaefiling.gov.in/aadhaarstatus Enter your PAN and Aadhaar card number. Select ‘View Link Aadhaar Status’. The following screen displays the status of the linking.
