The central government had extended the deadline to link Permanent Account Number (PAN) and Aadhaar card, considering the pandemic situation in the country. The deadline was extended from March 31 to June 30. However, the extended deadlines are nearing and less than a month is left in hand to link both the documents.
In its notification, the Central Board of Direct Taxes (CBDT) has said if anyone fails to link PAN card to Aadhaar card, it will become inoperative. It also clarified that in case user slink their PAN with Aadhaar Card after the deadline passes, then the PAN card will “become operative from the date of intimation of Aadhaar number.”
In Budget 2021, the central government added a new section 234H in the Income tax Act, 1961, where a fee can be levied from individuals if their PAN is linked with Aadhaar after the due date. As per the new section, if the PAN is linked with Aadhaar on or after July 1, 2021, then the person will be liable to pay a penalty which cannot exceed Rs 1,000.
If your PAN card becomes inoperative, you will not be able to conduct financial transactions wherever quoting it is mandatory. The CBDT notification from February 2021 mentions that once the PAN has been linked with Aadhaar, it will become operative again from the date on which PAN has been linked with Aadhaar.
If the PAN card is linked after the deadline i.e. June 30, individuals will be liable for a fee that will be levied under section 234H. Hence, it is advised to link the two before the deadline passes.
According to income tax laws, if an individual’s PAN becomes inoperative because of not linking it with Aadhaar by June 30, and such person is required to furnish or quote PAN, then it shall be deemed that they have not furnished/intimated/quoted the required document. This would make them liable for all consequences under the Income Tax Act.
Read all the Latest News, Breaking News and Coronavirus News here.
Comments
0 comment