PAN card holders who haven't connected their PAN and Aadhaar numbers by March 31, 2022 will be penalised. The deadline for linking an Aadhaar card with a PAN card has been extended by the government to March 31, 2022. If you don't, your PAN card will become invalid and you'll be in big trouble. PAN Aadhaar linkage would cost Rs 1,000 after the planned date.
Penalty procedures under the I-T Act now have until March 31, 2022 as their new deadline for completion. In addition, the Adjudicating Authority has been given until March 2022 to provide notice and pass an order under the Prohibition of Benami Property Transactions Act, 1988.
However, even if you miss the deadline, you may still link your PAN and Aadhaar accounts, albeit with a fine of Rs 1,000 and other penalties.
Implications if PAN is not connected to Aadhaar
A person's PAN card would cease to function if they do not connect their Aadhaar card to their PAN card by March 31, 2022. In order to comply with Know Your Customer (KYC) standards at clearing houses, banks, and even electronic wallets, a PAN Card is required.
In summary, failing to link your PAN to Aadhar beyond the requisite period would be terrible for your financial health.
A non-functional PAN card will have an effect on one's bank account deposits, as well as the interest received on those investments. TDS (Tax Deduction at Source) on interest above Rs 10,000 per year would double to 20% if the bank is not connected to the PAN Card. The TDS on interest earned above Rs 10,000 for bank accounts connected to a PAN card is 10%.
Additionally, a Rs 10,000 penalty may be imposed under Section 272B of the Income Tax Act if you fail to connect the two papers by the deadline and your PAN becomes inoperative; it would be presumed that your PAN was not given in accordance with the law.
The PAN enables the Income Tax Department to connect all of the assessee's transactions with the department. Tax payments, TDS/TCS credits, income tax returns, defined transactions, and communication are all examples of these transactions. It enables quick retrieval of assessee information and matching of assessee's different investments, borrowings, and other business activity.
Linking PAN and Aadhaar is a simple process.
Manner of doing Go to the e-filing portal of the income tax department to connect your PAN with Aadhaar. Link Aadhaar may be found on the left-hand side of the page. PAN, Aadhaar and name are all that are required. Attempt to solve the CAPTCHA and proceed. Your PAN Aadhaar Linking is complete after you click on the 'Link Aadhaar' option. After your Aadhaar information, such as name, date of birth, and gender, have been verified, the I-T department will complete the connection process.
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