PAN card holders have an opportunity to save ₹1000

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.

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).

How to apply for instant PAN card online:

1) Visit the income tax department’s e-filing portal and click on “Instant PAN through Aadhaar” section under “Quick Links” on the left side.

2) Click on “Get New PAN” on the new page.

3) Enter your Aadhaar number for allotment of new PAN card and the Captcha code to generate an OTP on your Aadhaar-linked mobile phone.

4) Validate OTP.

5) Validate Aadhaar details.

You can download your PAN in pdf format by submitting the Aadhaar number at “Check Status/ Download PAN”. You will also get the PAN in PDF format by your email, if your email-id is registered with Aadhaar database.