It is mandatory to link PAN and Aadhaar by 31 March 2021. Failure to do so will result in penalty, as well as trouble in large financial transactions.
Trouble may arise for those who do not have PAN and Aadhaar cards by the end of this month. The Income Tax Department has made it mandatory to link these important documents beforehand. The Central Board of Direct Taxes i.e. CBDT had already fixed the period for linking the permanent account number and Aadhaar number till 31 March 2021. In such a situation, you have only 5 days left to complete this work.
Apart from fixing the income tax deadline, it was also told that the PAN card will be invalidated. A finance bill was passed in the Lok Sabha on Tuesday. This information has been given in this bill. Being PAN card invalid means that it will be assumed that you do not have PAN card and will have to pay more on many types of transactions including many TDS.
If there is no PAN and Aadhaar link, it will not be possible to do more than Rs 50,000 transactions in future. Actually, under income tax rules, PAN card has to be shown on transactions of more than a fixed limit anywhere. In such a situation, if PAN card is not linked to Aadhaar and your PAN card has become inoperative, then it will not be possible to carry out large transactions.
Not only this, if your PAN card becomes useless, you will also have to pay a fine of Rs 10,000 under Section 272B of the Income Tax Rules. Within 5 days, all PAN card holders should check the status and get it linked to Aadhaar at the earliest.
By amending the Finance Bill, 2021 passed in the Lok Sabha, a provision has been made for penalties for not linking the PAN-Aadhaar card. Under section 139AA, while filing income tax return, it is mandatory for every person to provide his PAN and Aadhaar information.
For not linking PAN and Aadhaar, you will have to pay a penalty of Rs 1,000. Apart from this penalty, not having PAN-Aadhaar link can cause many problems.
If you want, you can make a PAN-Aadhaar link through the income tax official website sitting at home. On this website, by clicking on the option of View Link Aadhar Status, you can find out whether there is a pan-Aadhaar link or not. For linking via SMS, you can send the message to 567678 or 56161 by typing the Aadhaar number and PAN number by typing IDPN.