As the majority of you already know that linking PAN-Aadhaar is mandatory and now costs double penalty if done after June 30. The Central Board of Direct Taxes (CBDT made this clear with its announcement via a notification on March 29, 2022.
CBDT On Aadhaar and PAN Linking
As per the announcement made by the CBDT, if PAN and aadhaar are linked before June 30, 2022, then a penalty of ₹500 will be charged. However, from July 1, 2022, a penalty of ₹1,000 will be levied for the same process.
A circular released by CBDT on March 30, 2022, said, “Further, rule 114 AAA of the Income-tax Rules provides that if PAN of a person has become inoperative, he will not be able to furnish, intimate or quote his PAN and shall be liable to all the consequences under the Act for such failure.”
If PAN Becomes Inoperative:
- Then a person cannot file an ITR.
- Pending returns will stay pending as with inoperative PAN they cannot be processed.
- No ITR revisions are allowed
- The tax deduction will be done at a higher rate.
Also read:
EPF Account Holders Get ₹50,000 As Additional Bonus
How To Pay Penalty While Linking Aadhaar-PAN?
- To pay penalty while linking Aadhaar-PAN:
- Visit this portal to begin the process
- Now click on ‘Proceed under CHALLAN NO./ITNS 280’ to proceed with your request.
- Select ‘tax applicable’
- In the next step, ‘Please make sure fee payment is done under Minor head 500 (Fee) and Major head 0021 [Income Tax (Other than Companies)] in the single challan.’
- Select the mode of payment whichever suits you.
- Enter the details including assessment year, PAN, and address.
- Complete the verification code with a captcha and then proceed.
- Now, please complete the linking process after 4-5 days, as the payments made at the NSDL portal take few days to reflect on records,
