PAN-Aadhaar Link: If you do not link your Permanent Account Number (PAN) and Aadhaar within two days, you will have to pay a penalty of Rs 500 to Rs 1,000. March 31 is the deadline to complete PAN and Aadhaar.
Penalty till March 31 for not linking PAN-Aadhaar
The Central Board of Direct Taxes (CBDT) has decided to impose a fine of Rs 500 if you miss this deadline, but complete the seeding process within three months i.e. by June 30, 2022. If you are unable to do so, you will be charged double the penalty fee.
Non-linked PAN will become inactive after March 31
Also, if the linking process is not completed, your PAN will become inactive after March 31, 2022. The Income Tax Department circular states that you can reactivate your PAN after paying a penalty fee of Rs 500 or Rs 1,000.
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Amit Maheshwari, Tax Partner, AKM Global, a tax and consulting firm, “Any failure can lead to PAN becoming inactive, which means a person did not have any PAN for income tax purposes. This Advice for Tax Payers It is recommended that they check their income tax portal and ensure that Aadhaar and PAN are linked. NRIs may have some concerns, as in some cases they do not have Aadhaar.”
Consequences of Non-compliance
Not completing the linking process and inactive PAN can be disastrous for the entire gamut of your financial transactions. “One, you will not be able to file your income tax return without PAN,” says Chartered Accountant Karan Batra, Founder, Chartered Club.
This will be applicable from assessment year 2022-23. Also, your mutual fund SIP transaction will not happen. Market regulator Securities and Exchange Board of India (SEBI) had earlier said that only those investors whose PAN has been linked with Aadhaar will be allowed to invest. Unless your PAN and Aadhaar are linked, you will not be able to open a new broking or demat account.
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