Your PAN Will Be Blocked, Rs 1000 Fine Imposed If You Don’t Do This Before April 1st

If you fail to link PAN and Aadhaar by 31 March, you will be liable to pay a fee of Rs 1,000
If you fail to link PAN and Aadhaar by 31 March, you will be liable to pay a fee of Rs 1,000

The government has included an amendment in the Finance Bill, 2021, passed by the Lok Sabha on Tuesday, under which an individual will be liable to pay a late fee of up to Rs1,000 if their PAN is not connected to their Aadhaar number.

If your Permanent Account Number is not linked to your Aadhaar card, your PAN card will turn useless from next month. All such PAN cards which are not linked to Aadhaar would be useless and declared “inoperative” after the deadline ends. If your PAN is not linked to your Aadhaar, then from 1 April you will not be able to do any financial transaction.

The last date for linking both the documents is 31 March!

What If You Fail To Link Your Pan With Aadhaar By 31st March?

Section 139AA of the Income Tax Act allows anyone eligible for Aadhaar to include their Aadhaar number in their income tax return and application for PAN allotment. If a person does not comply, his or her PAN card will become invalid after March 31, 2021.

As per rule 114AAA, in the case where a person is required to furnish or intimate his PAN and the PAN is inoperative, it will be deemed that he or she has not furnished PAN. If an individual fails to provide a PAN or provides an inoperative PAN, he or she may be liable to pay a higher TDS (tax deducted at source) or TCS (tax collected at source), as well as not be able to file an income tax return and face the consequences of not filing the tax return under various provisions of the Income Tax Act.

“The Finance Bill (Lok Sabha) has inserted a new Section 234H to levy a fee for default in intimating the Aadhaar number. If a person is required to intimate his Aadhaar under Section 139AA(2) and such person fails to do so, he shall be liable to pay a fee, as may be prescribed, not exceeding Rs 1,000 at the time of making such intimation,” said Tarun Kumar a Delhi based chartered accountant, quoting update from mint

 “Therefore, if a person fails to link PAN and Aadhaar by 31 March, he shall be liable to pay a fee of ?1,000. This fee shall be in addition to the other consequences the person has to face if PAN becomes inoperative due to non-maintenance of Aadhaar,” he added.

“The government has in the past given several extensions to allow people to link Aadhaar and PAN, it appears now they want to penalise those who don’t do it within due date by levying a late fee,” said Shailesh Kumar, partner, Nangia & Co. LLP, a tax firm.

Linking Aadhaar Card With PAN Manually

Fill out the ‘Annexure-I’ form at a service centre for your PAN card. Attach a copy of your PAN and Aadhaar cards to the form. A fee is paid for manually linking papers, as opposed to online linking, which is free.

Using SMS Service

The documents can also be linked by sending an SMS to 567678 or 56161 from your registered mobile number after typing UIDPAN and clicking send. The format for the SMS is: Type UIDPAN (12-digit Aadhaar number), put space (10-digit PAN) and send it to 567678 or 56161.

There is no charge being levied on the SMS sender by NSDL or UTI. 

Check PAN-Aadhaar Link Status

 Visit www.incometaxindiaefiling.gov.in/aadhaarstatus

 Enter PAN and Aadhaar Number

 Click on ‘View Link Aadhaar Status’

 The status of the linking is displayed on the next screen

Using The Income Tax Department’s Portal

Visit the income tax department’s e-filing portal: http://incometaxindiaefiling.gov.in/

Click on the ‘Link Aadhaar’ section on the left.

Fill in the PAN number, Aadhaar number, name and the CAPTCHA.

Click on the ‘Link Aadhaar’ option. The income tax department will validate your details, thereafter your PAN- Aadhaar linking will be completed.

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