Missing PAN-Aadhaar linking by 31 March will appeal to as much as Rs1,000 charge, however PAN to stay lively

The final date to file PAN with Aadhaar is 31 March, failing which a tremendous of ₹500- ₹1,000 can be levied, mentioned Central Board of Direct Taxes (CBDT) on Wednesday. 

Beginning April 1, a late tremendous of ₹500 can be levied if PAN linking with Aadhaar is finished throughout the first three months and thereafter ₹1,000 charges can be levied. However, CBDT has restricted the penalty solely to late charges and clarified that the PAN will proceed to be operative and all transactions that mandate quoting PAN won’t be affected. 

 “In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated twenty ninth March, 2022, a window of alternative has been offered to the taxpayers upto thirty first of March, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking with out dealing with repercussions,” CBDT mentioned in its round. 

Earlier, it was introduced that defaulters won’t solely must pay a late penalty however the current PAN quantity may also develop into inactive.

 “PAN changing into inoperative deems that an individual had no PAN for income-tax functions,” said Amit Maheshwari, Tax Partner, AKM Global. “This could have created issues for some NRIs (Non-resident Indians) as they do not have Aadhaar.”

Further, inoperative PAN forbids folks from finishing up sure transactions the place quoting of the identical is obligatory, corresponding to buy of immovable property, funds of over ₹50,000 in direction of life insurance coverage premium or buy of mutual fund items, sale or buy of motor autos and so on.  

 “Once the PAN turns into inactive, the particular person can be restricted from doing monetary transactions, subjected to TDS at increased charges and penalty underneath part 272B,” mentioned Neeraj Agarwala, Partner, Nangia Andersen. An assessing officer (AO) points a penalty underneath part 272B when he finds that the taxpayer has didn’t submit or adjust to any obligatory requirement associated to PAN, as specified within the earnings tax legal guidelines, for transactions. The penalty may be as a lot as ₹10,000 for every default. 

However, taxpayers needn’t fear about this but as this penalty gained’t kick in till April 2023. “…till 31st March, 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc,” CBDT mentioned.

Taxpayers can hyperlink their PAN and Aadhaar and even verify the standing of linking by visiting the 

Income tax web site https://incometaxindiaefiling.gov.in/. Alternatively, the linking course of may be carried out by means of SMS additionally by sending a message within the format UIDPAN <insert Aadhaar> <enter PAN> to 56161 or 567678 out of your registered cellular quantity. 

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