New Delhi: People who have not yet linked their PAN with Aadhaar card and those who will not do so within the deadline of March 31, they may get attention of the income tax department and might get a penalty of Rs 10,000 for using an inoperative Permanent Account Number. Also Read - Now, Quoting Wrong PAN Card Number Can Attract a Rs 10,000 Fine | All You Need To know
The development comes as the income tax department had earlier announced that it will declare all unlinked PAN cards as inoperative. To bring that order into effect, the income tax department has now issued a fresh notification saying that such PAN card holders shall have to pay a heavy penalty under the Income Tax Act for not furnishing their respective PAN cards. Also Read - 20 Crore PAN Cards to Become Junk After August 31 if Not Linked With Aadhaar Number
At a time when a PAN becomes inoperative, it will be assumed that the PAN has not been furnished as per the law and a penalty of Rs 10,000 may apply as per Section 272B of the Income Tax Act, an expert told a news agency. Also Read - Union Budget 2019: 'Aadhaar, PAN Cards Interchangeable, File ITR With Either,' Says Sitharaman
On the other hand, if the PAN card is used as an identity proof for opening a bank account or applying for a driving licence, then it does not attract penalty. But there will be problem if the transactions in that account come under the purview of income tax.
However, if the PAN and Aadhaar are linked, then the PAN becomes operative, and it will not attract any penalty. People who have inoperative PAN cards must remember that they don’t need to apply for a fresh PAN card because once their PAN is linked, it becomes active once again.