On March 31, 2021, the Income Tax Department announced the new date to link your Aadhaar with your PAN Card. Now, the extended date is 30th June 2021. With this new date, a lot of people can link their Aadhaar and PAN in order to avoid penalties and deactivation of PAN. There are people who failed to link their Aadhaar with PAN due to the Income Tax Portal crash, and thus government decided to extend the deadline.
As per Section 234 H, an individual is levied to pay, Rs 1,000 in case if failed to link his/her aadhaar with PAN till the due date. Even after so many Supreme Court judgments, the PAN and Aadhaar linkage is still a concern for people who oppose this. However, here are a few explanations for the concerns and consequences might face if you are not linking Aadhaar with PAN.
Consequences of Not Linking Aadhaar with PAN
- As we know, not linking these two documents might result in PAN inactiveness. If it is so then you cannot make financial transactions where a PAN card is required. For example: making transactions above Rs 50,000.
- In addition to the above, you all not be able to file Income Tax Returns (ITR) or open a new bank account. Moreover, you will have to pay higher TDS. According to Section 272B of the Income Tax Act, an individual needed to pay a penalty of Rs 10,000 if operational PAN is not furnished.
- Besides these, under Section 139AA of the Income Tax Act, it is mandatory for those people who have allotted PAN as of July 1, 2017, and holds an Aadhaar card must link them.
The cost of an invalid PAN is much more than paying a Rs 1,000 penalty. To avoid these consequences, individuals must link their Aadhaar and PAN now!