The income tax department has provided relief to taxpayers who are yet to link their PAN with Aadhaar albeit with some conditions. The CBDT has notified the fee structure via a notification dated March 29, 2022. The notified fee which will be payable for linking PAN with Aadhaar for linking it on or after April 1, 2022 will have two-tier structure. Read on to know about it.
Even if you do not link your PAN with your Aadhaar number by end of the day today, your PAN will remain operative till March 31, 2023 and will not become inoperative as was earlier notified/indicated by the government. Essentially, the deadline to keep your PAN operative without linking it to your Aadhaar has been extended to March 31, 2023 from the earlier deadline of March 31, 2022. However, linking of PAN-Aadhaar from April 1, 2022, will cost you money. This was announced by the Central Board of Direct Taxes (CBDT) via a notification dated March 29, 2022, and press release dated March 30, 2022.
As per the press release, “In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated 29th March 2022, a window of opportunity has been provided to the taxpayers up to 31st of March 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. As a result, taxpayers will be required to pay a fee of Rs 500 up to three months from 1st April 2022 and a fee of Rs.1000 after that, while intimating their Aadhaar. However, till 31st March 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc.”
Thus, linking of PAN with Aadhaar from April 1, 2022, will cost you Rs 500 if both are linked on or before June 30, 2022. If the linking of PAN-Aadhaar is done on or after July 1, 2022, then fee of Rs 1,000 will have to be paid. The levy of a fees up to Rs 1000 for linking PAN-Aadhaar after March 31, 2022, had already been notified earlier. Now the structure of this fees has been spelt out.
Further, if the PAN is not linked with Aadhaar by March 31, 2023, then next year starting April 1, 2023, your PAN will become inoperative. Once your PAN becomes inoperative, your will not be able to file income tax return, open bank account, invest in mutual funds etc.
As per income tax laws, it is mandatory for every person having PAN as on July 1, 2017 and eligible to obtain Aadhaar number, to intimate his/her Aadhaar number to the prescribed authority on or before the prescribed date (March 31, 2022 as per earlier government diktat). On failure to do so, his/her PAN will become inoperative and all procedures in which PAN is required shall be halted. As per the earlier notification, the PAN could have been made operative again after March 31, 2022 upon intimation of Aadhaar to the prescribed authority after payment of a prescribed fee (up to Rs 1000).
The income tax department can also levy penalty under section 272B of up to Rs 10,000 for not having active PAN. However, now this will be levied if PAN becomes inoperative after March 31, 2023 as a result of not linking it to Aadhaar.
Ways to link PAN with Aadhaar
The income tax department offers various ways to link PAN with Aadhaar. These include on the income tax e-filing portal, SMS, manually by visiting NSDL/UTIIL offices.
Also Read: How to link PAN with Aadhaar