PAN card holders have an opportunity to save ₹1000. Details here
PAN Aadhaar link: PAN card holders are advised to link their Permanent Account Number (PAN) with their Aadhaar card number by 31st March 2021. Failing to meet this Aadhaar PAN link last date will now lead to late fee of ₹1,000. According to the recently inserted Section 234H of Income Tax Act, if a PAN card holders fails to seed one’s PAN with Aadhar card number on or before the given deadline, will be liable to pay up to ₹1,000 late fee. The section was inserted in Budget Session 2021 through a Finance Bill.
As per the newly inserted Section 234H of the Income Tax Act, “Without prejudice to the provisions of this Act, where a person is required to intimate his Aadhaar number under sub-section (2) of section 139AA and such person fails to do so on or before such date, as may be prescribed, he shall be liable to pay such fee, as may be prescribed, not exceeding one thousand rupees, at the time of making intimation under sub-section (2) of section 139AA after the said date.”
Apart from ₹1,000 fee for PAN Aadhaar linking, there are various other monetary losses that a PAN card holder can’t afford to miss out. Failing to meet the deadline for Aadhaar PAN linking, one’s PAN card would become invalid that means an individual won’t be able to invest in mutual funds, shares, open a bank account, etc. where furnishing one’s PAN card is must.
Under Section 272B of the Income Tax Act, if a person furnishes an invalid PAN card, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ₹10,000. Also, an invalid PAN card holder won’t be able to files income tax return (ITR).
So, it’s important for a PAN card holder to seed its PAN with its Aadhaar card number and avoid any kind of penalty after failing to meet PAN Aadhaar linking deadline.
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