After declaring that the Permanent Account Number (PAN) card, that is not linked with Aadhaar, will become inoperative by after March 31, 2020, the Income Tax Department has now said that it might impose Rs. 10,000 penalty for using a PAN Card not linked with Aadhaar card.
This comes days after the IT department declared that all the PAN card, not linked with the Aadhaar card will become “inoperative” after 31st March. The IT department has also said that the ones who fail to link the same will have to face consequences for not adhering to the national orders.
“Typically, when a PAN becomes inoperative, it will be assumed that PAN has not been furnished/quoted as required by the law and a penalty of ₹10,000 may apply as per Section 272B of the Income Tax Act,” BankBazaar CEO Adhil Shetty said.
Linking PAN is necessary as if not linked, it could result in complications. For example, if a bank account is opened using an inoperative PAN card and if you make a transaction of over Rs 50,000 with the same, a PAN is necessary. So if PAN Card is linked with the Aadhaar, the IT department can easily cross-check the transaction and ensure your account and money are safe.
For someone worried about what will happen to their Aadhaar card once it becomes inoperative, well, once you link your PAN and Aadhaar, the PAN becomes operative, and no penalties shall be applicable post the date of linking.