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If you do not link your Permanent Account Number (PAN) with the Aadhaar number by this month end, you can end up paying a huge penalty.
After deciding to link the two by bringing in a provision in the Finance Act, 2017, the government has extended the deadline a number of times, with latest ending on March 31. According to Income Tax officials, there is little possibility of another extension.
Section 139AA of the I-T Act states, “failure to intimate the Aadhaar number, the Permanent Account Number allotted to the person shall be made inoperative after the date so notified.” Use of an inoperative PAN can cost dearly.
Penalty
“You may have to pay penalty up to ₹10,000 under Section 272B of the Income Tax Act for not holding a valid PAN,” Sujit Bangar, Founder of Taxbuddy.com, said while adding that one will not be able to use the PAN for any financial transaction.
Bangar says there are many benefits of linking PAN and Aadhaar. For example, the tax filing process becomes easier. “If your PAN and Aadhaar are linked, you can eliminate the final step of sending a hard copy of the acknowledgement to the IT Department. You can do the verification through Aadhaar OTP, saving you time and money,” he said. Also, with PAN and Aadhaar linked, it can speed up the document verification process when applying for a loan.
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