If your PAN is also a PAN card, then it is very important for you to know this news, because PAN card holders are advised to link their Permanent Account Number (PAN) with their Aadhaar card number by 31 March 2022. Failing to do so by the given time limit will not only make their PAN card invalid, but also require a fee of ₹1,000 for linking PAN with Aadhaar.
The problem of a PAN card holder will not end here, as one will not be able to invest in mutual funds, stocks, open bank accounts, etc., where it is necessary to present a PAN card. Further, under section 272N of the Income Tax Act 1961, if the person produces a PAN card, which is no longer valid, the Assessing Officer may direct that such person shall pay an amount of ten thousand rupees as penalty.
As per the new law, failure to link the two IDs will result in the PAN becoming invalid, which means that one cannot conduct financial transactions requiring PAN details. These include filing income tax returns and opening a bank account. Also, the said person may have to pay more TDS amount. As per section 272B of the Income Tax Act, a penalty of ₹10,000 will be levied if the person fails to quote the PAN, if required.”
Furnishing an invalid PAN will also attract a fine of Rs 10,000. Hence, it is important for the PAN card holder to link his/her PAN card with his/her Aadhar card and avoid any kind of penalty after failing to meet the deadline for PAN Aadhaar linking.
PAN card holders are also advised to note that failing to meet the deadline for PAN-Aadhaar linking will attract a penalty of up to ₹1,000 for late linking of PAN with Aadhaar.