Linking Pan Card Aadhaar: Linking PAN-Aadhaar after July 1 to cost you more: How to link PAN with Aadhaar

The deadline for linking PAN to Aadhaar has been extended from March 31, 2022 to March 31, 2023. Although the deadline for keeping your PAN operational without linking it to your Aadhaar, linking PAN-Aadhaar from April 1, 2022 will will cost money. This was announced by the Central Commission for Direct Taxes (CBDT) via a notification dated March 29, 2022 and a press release dated March 30, 2022

If you link your PAN to your Aadhaar on or before June 30, 2022, you will be charged a fee of Rs 500. A fee of Rs 1,000 would be required if the PAN-Aadhaar link is terminated on or after July 1, 2022. Fees have now been broken down into their components

According to the CBDT press release, “In order to mitigate the inconvenience to taxpayers, in accordance with Notification No. 17/2022 of March 29, 2022, a window of opportunity has been offered to taxpayers until March 31, 2023 to make their Aadhaar known to the prescribed authority for Aadhaar-PAN linkage without facing any repercussions.As a result, taxpayers will have to pay a fee of Rs.500 up to three months from 1st April 2022 and a fee of Rs. Thereafter, while notifying their However, until March 31, 2023, the PAN of assessees who have not hinted at their Aadhaar will continue to be functional for the procedures required by law, such as the provision of filing a tax return, processing refunds, etc.

How to pay the penalty amount

According to a recent tweet on the official Income Tax Department Twitter account, here is how to pay the penalty amount.

“Fee of Rs.500 payable if bound till 30/06/22 otherwise fee payable is Rs.1000. Fee payable by Challan Non ITNS 280 with main head 0021 (Income tax other than companies) and 500 minor head (fee) Try to link after 4-5 business days from the date of payment.

Link PAN Aadhaar StartedFee of Rs.500 to be paid if linked until 30/06/22, otherwise the fee to be paid is Rs.1000Fees to be p… https://t.co/95a54YeXTS

– Tax Updates 📊 (@TaxationUpdates) 1654051193000

How to link PAN with Aadhaar

The Income Tax Service offers different ways to link PAN to Aadhaar. These include on the electronic income tax filing portal, SMS, manually by visiting the NSDL/UTILI offices.

Also read: How to link PAN with Aadhaar?

Who is not obliged to compulsorily bind PAN-Aadhaar? Also check the penalty details

Deadline for linking PAN-Aadhaar

The deadline for linking a PAN to an Aadhaar number has been extended until March 31, 2023, after which time PANs that have not been linked to an Aadhaar number will become inoperative.

Any person who has been assigned a permanent account number (‘PAN’) and who is eligible to obtain an Aadhaar number must link their PAN to Aadhaar, in accordance with section 139AA of the Income Tax Act 1961. income (‘Law’).

Here are some important FAQs on the PAN-Aadhaar link on the Income Tax Department website.

Who should bind Aadhaar and PAN, what is the amount of the penalty?

Section 139AA of the Income Tax Act provides that anyone who was assigned a permanent account number (PAN) on July 1, 2017 and who is eligible to obtain an Aadhaar number, must state their Aadhaar number within the prescribed deadlines. form and manner. In other words, such persons must obligatorily bind their Aadhaar and PAN before the prescribed date (Currently, 31.03.2022 without payment of fees and 31.03.2023 with payment of prescribed fees. For more details, refer to the circular CBDT n°7/2022 of 03.30.2022.

For whom is the Aadhaar-PAN link not mandatory?

The Aadhaar-PAN bond does not currently apply to anyone who is:

residing in the states of Assam, Jammu and Kashmir and Meghalaya;

a non-resident within the meaning of the Income Tax Act 1961;

of the age of eighty years or more at any time during the preceding year;

not a citizen of India.

“The planned exemptions are subject to change depending on subsequent government notifications on this subject”

“For details, see Department of Revenue Notice No. 37/2017, May 11, 2017.”

How to link Aadhaar and PAN?

Both registered and unregistered users can link their Aadhaar and PAN on the e-Filing portal even without logging in. You can use the Link Aadhaar quick link on the e-Filing homepage to link Aadhaar and PAN.

How to pay the prescribed fees for the PAN-Aadhaar route?

Payment of fees for the PAN-Aadhaar link must be made through the e-Pay Tax functionality available on the NSDL (now Protean) portal. The prescribed fee should be paid under Major Head 0021 and Minor Head 500 and AY should be 2023-24 using Challan ITNS 280.

Why you should link PAN with Aadhaar

If the PAN is not linked to Aadhaar by March 31, 2023, then next year from April 1, 2023, your PAN will become inoperative. Once your PAN becomes inoperative, you will no longer be able to file a tax return, open a bank account, invest in mutual funds, etc.

In accordance with income tax laws, it is mandatory for anyone with a PAN as of July 1, 2017 and eligible to obtain an Aadhaar number, to submit their Aadhaar number to the prescribed authority no later than the prescribed date ( March 31, 2022 as per previous government dictate). In the event of non-compliance with this instruction, his PAN will become inoperative and all procedures requiring a PAN will be interrupted. According to the previous notification, the PAN could have been operational again after March 31, 2022 upon notification by Aadhaar to the prescribed authority after payment of a prescribed fee (up to Rs 1000)

The Income Tax Department may also impose a penalty under Section 272B of up to Rs 10,000 for not having an active PAN. However, this will now be levied if the PAN becomes inoperative after March 31, 2023 due to its non-linkage to Aadhaar.