Link PAN Card With Aadhaar by March 31, Or Pay Penalty: Income Tax Department Warns Taxpayers

Pan Aadhaar Linking Latest Update: The CBDT said not linking PAN with Aadhaar will lead to PAN becoming inoperative after March 31, 2022 and it can be re-operationalised on payment of penalty.

New Delhi: With just one day left for the deadline to end, the Income Tax department on Wednesday issues a notification asking the taxpayers to link their PAN card with Aadhaar by March 31. Issuing a warning, the tax department said if the taxpayers failed to link PAN with Aadhaar by March 31, they would be required to pay a penalty ranging from Rs 500 to Rs 1,000.

The tax department further added that the last date for linking Permanent Account Number (PAN) with biometric Aadhaar is March 31, 2022 and not completing the task before the deadline will lead to PAN becoming inactive.

In the fresh notification, the Central Board of Direct Taxes (CBDT) said delayed intimation of Aadhaar will attract a late fee of Rs 500 in cases where it is linked within the next 3 months or by June 30, 2022. Thereafter, Rs 1,000 would have to be paid by taxpayers as a penalty.

The CBDT further added that not linking PAN with Aadhaar will lead to PAN becoming inoperative after March 31, 2022 and it can be re-operationalised on payment of penalty.

AKM Global, Tax Partner, Amit Maheshwari said that the Central government after extending the deadline several times for linking Aadhaar with PAN has finally come up with a late fees notification where Rs 500 penalty would be attracted for the first three months beginning April 1, 2022 and thereafter Rs 1,000.

“Any failure may lead to PAN becoming inoperative, which deems that a person had no PAN for income-tax purposes. It is advisable for taxpayers to check their income tax portal and ensure that Aadhaar and PAN are linked. NRIs may have some concerns since in some cases they do not have Aadhaar,” Maheshwari was quoted as saying by PTI.

The taxpayers must note that PAN is used for various transactions like opening a bank account, purchase of immovable property or proof of identity, and inactive PAN will trigger domino effect and individual who have not linked their Aadhaar may face multiple challenges.

Here is a step-by-step process to link PAN with Aadhaar

• Search for the new e-filing portal 2.0.
• Now, click on the ‘Our Services’ tab
• Select the ‘Link Aadhaar’ option
• On the new page, fill in all your details
• Fill in your PAN number, Aadhaar Number, Name as per Aadhaar and Mobile Number
• Now tick on the box “I agree to validate my Aadhaar details”
• Enter the 6-digit OTP that you received on your registered mobile number
• Enter the OTP and click on ‘Validate’
• After clicking, a pop-up message stating that your link PAN with the Aadhaar request has been submitted.