As per Section 139AA of the Income Tax Act, 1961, linking the PAN with Aadhaar is mandatory for every taxpayer in India.
The deadline for linking the Permanent Account Number (PAN) with Aadhaar has already passed and now the government has started imposing a penalty on the defaulters. The deadline to link the PAN with Aadhaar was June 30, 2023.
The PANs that were not linked to Aadhaar numbers became inoperative from July 1 last year. Those who missed the deadline are liable to pay a penalty of Rs 1,000.
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In February, Minister of State for Finance Pankaj Chaudhary informed the Parliament that the number of PANs not linked to Aadhaar stood at 11.48 crore, as of January 29, 2024. The government had collected nearly Rs 600 crore as a penalty from the defaulters.
As per Section 139AA of the Income Tax Act, 1961, linking the PAN with Aadhaar is mandatory for every taxpayer in India. Otherwise, they may not be able to file their income tax returns (ITRs). Initially, the I-T Department had declared that the last date for the PAN-Aadhaar link was March 31, 2022. The deadline was later extended to June 30, 2023.
Those who completed the PAN-Aadhaar linking from July 1, 2023, onwards were liable to pay a fine of Rs 1,000.
Taxpayers can now link their PANs with Aadhaar through the e-filing Portal of the Income Tax Department by paying the required late fine which is mandatory under Section 234H of the Income Tax Act, 1961.
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Here’s how to pay penalty and link PAN-Aadhaar online
Visit the e-filing Portal and click on Link Aadhaar from the Quick Links section on the homepage. You can also log in to the e-filing portal and click on ‘Link Aadhaar’ in the Profile section.
1. Key in your PAN and Aadhaar Number in designated boxes
2. Click on “Continue to Pay Through e-Pay Tax”
3. Enter your PAN and confirm it. You will receive an OTP on the registered mobile number.
4. Once the OTP verification is done. The e-Pay Tax page will appear on the screen.
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5. Click on Proceed on the Income Tax button and select the relevant Assessment Year and Type of Payment as Other Receipts (500).
6. Click on Continue to get the applicable amount to be pre-filled.
7. A challan will be generated. Once the payment is completed, Aadhaar can be linked with PAN from the e-filing Portal.
Once everything is done, you can see the status of PAN-Aadhaar linking by clicking the link “Aadhaar Status” available on the homepage of the e-filing portal.
