The mandatory step to link you Permanent Address Number or PAN with your Aadhar Card is due until the end of this month, i.e., March 31, 2022. Failure to do so will attract some problems, which can be avoided in a few steps.
In this article, we will help you identify all the problems you could face if you choose to not link your PAN with Aadhar card, one of which includes a penalty.
Last Date for Linking PAN With Aadhar
After deferring the compulsory last date for linking your PAN with Aadhar card from Sept 30, 2021, the Central Board of Direct Taxes (CBDT) shifted the deadline to Mar 31, 2022.
It is compulsory to link the two, by the deadline hits.
“The Central Government, in continuation of its commitment to address the hardship being faced by various stakeholders on account of the Covid-19 pandemic, has, on consideration of representations received from various stakeholders, decided to extend timelines for compliances under the Income-tax Act,” notified CBDT.
You do not want to delay doing so post the deadline, as this would make your PAN inoperative, meaning it will be as good as not having one.
Problems Faced If PAN Not Linked By Deadline
Not having your PAN linked with Aadhar card will give rise to a slew of problems, as the former is among the most important government documents, required in almost every identification process.
Moreover, the government has initiated 234H, a new section under the Income Tax Act, 1961, which will allow officials to charge a penalty on an individual failing to link the two documents by the due date.
While the penalty cannot be charged more than Rs 1,000, furnishing an invalid PAN will attract a fine of Rs 10,000, states a News18 report.
Besides, it is mandatory to present a PAN for opening any sort of account, be it for bank account, mutual funds, demat account for trading in stock markets, and other investments.
Having a functioning PAN is mandatory for the KYC process.
If your PAN is not linked with your bank account, you will have to give double TDS. If it is, a 10% TDS is charged.
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