CBDT has decided to impose a fine of Rs.500 if you miss this deadline
PAN-Aadhaar Link: If you do not link your Permanent Account Number (PAN) and Aadhaar within two days, you will have to pay a fine of Rs.500 to Rs.1000. March 31 is the deadline to complete the pan and aadhaar.
Penalty for not linking Pan-Aadhaar till March 31
The Central Board of Direct Taxes (CBDT) has decided to impose a fine of Rs.500 if you miss this deadline, but complete the seed sowing process within three months i.e. by June 30, 2022. If you are unable to do so, you will be charged double the penalty fee.
After March 31, the non-linked pan will become inactive
Also, if the linking process is not completed, your PAN will be deactivated after March 31, 2022. The Income Tax Department Circular says that you can reactivate your PAN after paying a fine of Rs.500 or Rs.1000.
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Amit Maheshwari, Tax Partner, AKM Global, a tax and consulting firm, said, “Any failure can result in PAN becoming inactive, which means a person had no PAN for income tax purposes. It is recommended for taxpayers to check. Make sure Aadhaar and PAN are linked. NRIs may have some concerns, such as not having Aadhaar in some cases. “
Consequences of non-compliance
Incomplete linking process and inactive PAN can be detrimental to the entire flow of your financial transactions. “One, you can’t file your income tax return without a PAN,” said Karan Batra, a chartered accountant and founder of the Chartered Club.
This will be applicable from the assessment year 2022-23. Also, your mutual fund SIP transaction will not happen. The Securities and Exchange Board of India (SEBI), the market regulator, had earlier said that only those investors who have been linked to PAN Aadhaar would be allowed to invest. If your PAN and Aadhaar are not linked, you will not be able to open a new broking or demat account.