The Income Tax Department has recently announced that it can impose a fine of Rs 10,000 on PAN card holders who fail to link their PAN with their Aadhaar card. This decision has been made in order to ensure better compliance with tax laws and to curb tax evasion. The deadline to link PAN and Aadhaar has been extended multiple times in the past, but now the Income Tax Department is taking a strict stance on it.
The PAN card, which stands for Permanent Account Number, is a unique 10-digit alphanumeric identification number issued by the Income Tax Department to individuals and entities who are liable to pay taxes in India. It is mandatory for all individuals and entities who have a taxable income to have a PAN card. Similarly, the Aadhaar card, which is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI), is also mandatory for all residents of India.
The linking of PAN and Aadhaar has been made mandatory by the government in order to prevent tax evasion and to identify individuals who have multiple PAN cards. It also helps in streamlining the tax filing process and makes it easier for the Income Tax Department to track financial transactions of individuals.
The deadline to link PAN with Aadhaar has been extended multiple times in the past due to various reasons, such as technical glitches and lack of awareness among individuals. However, the Income Tax Department has now made it clear that there will be no further extensions and all PAN card holders must link their PAN with Aadhaar before the deadline of 30th September 2021.
Failing to link PAN with Aadhaar by the deadline can result in a fine of Rs 10,000. This penalty will be levied under section 272B of the Income Tax Act, which states that any person who fails to comply with the provisions of section 139A (which includes linking PAN with Aadhaar) shall be liable to pay a penalty of Rs 10,000.
To link PAN with Aadhaar, individuals can visit the e-filing website of the Income Tax Department or can do it through SMS by sending a message to 567678 or 56161. It is a simple process that requires individuals to enter their PAN and Aadhaar number, along with their name as mentioned on the Aadhaar card. Once the details are verified, the PAN and Aadhaar will be linked.
It is important for all PAN card holders to take this notification seriously and link their PAN with Aadhaar before the deadline. Ignoring this notification can result in not only a fine of Rs 10,000 but also other consequences such as delay in tax refunds, rejection of tax returns, and even deactivation of PAN card. This can lead to various difficulties in financial transactions and can also result in legal issues.
In conclusion, it is the responsibility of all PAN card holders to ensure that their PAN is linked with their Aadhaar. The Income Tax Department has made it clear that there will be no further extensions and strict action will be taken against those who fail to comply with this requirement. Therefore, it is advisable for all PAN card holders to link their PAN with Aadhaar as soon as possible to avoid any penalties or difficulties in the future.
