Aadhaar-PAN Linking: Now pay Rs 500 fine to link PAN-Aadhaar or face THIS

New Delhi: Last month was the deadline for linking PAN and Aadhaar, and individuals who did not complete the task will face consequences. The Central Board of Direct Taxes, or CBDT, has stated in its newest circular that this does not mean your PAN will be made inactive. Those who have not linked their Aadhaar to their PAN can do so by paying a fine of up to Rs 1,000 until next year, according to the board, which sets income tax laws.

The CBDT had extended the deadline for linking PAN and Aadhaar to March 31, 2023, but those who have yet to do so will be fined. By June 30, 2022, a penalty of Rs 500 must be paid “in the instance where such intimation is made within three months from the date referred to in sub-section.” A fine of Rs 1,000 is also required to link Aadhaar and PAN.

As a result, if the Aadhaar number is not provided by the last extended notified date, which is March 31, 2023, the PAN allocated to the person will be rendered inoperative non compliance with the Act, according to the CBDT.

A non-functioning PAN can result in a variety of issues, including the inability to file a tax return, the failure to process pending returns and refunds, increased tax deductions, and more. Furthermore, because PAN is a key KYC criterion for all types of financial transactions, the taxpayer may have problems in a variety of other places, such as banks and other financial portals. As a result, integrating PAN and Aadhaar is a critical duty.

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