News

Link your PAN with Aadhaar by March-end to avoid ₹10,000 fine

Prashasti Awasthi Mumbai | Updated on March 02, 2020 Published on March 02, 2020

Income tax assessees will be fined ₹10,000 for not linking their permanent account number (PAN) card with Aadhaar card before March 31. The income tax department, which had earlier extended the date of linking the PAN with Aadhaar in December 2019 to March 2020, will now impose the penalty for having an inoperative PAN.

The income tax department had announced last year that all unlinked PAN cards will be declared “inoperative.” Now, it has issued a new notification stating that action will be taken against the inoperative PAN cardholders under the Income Tax Act for not furnishing PAN, according to Livemint report.

BankBazaar CEO Adhil Shetty told Livemint that when a PAN becomes inoperative, it is assumed by the law that it has not been furnished/quoted and a penalty of ₹10,000 may apply as per Section 272B of the Income Tax Act.

According to the Section 272B: “If a person, who is required to quote his permanent account number or Aadhaar number, as the case may be, in documents referred to in sub-section (6A) of section 139A or authenticate such number in accordance with the provisions of the said sub-section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.”

However, using the PAN card as ID proof for non-tax related purposes like opening a bank account or applying for a driving license shall not be charged with. But, there can be complications if the bank account is opened using an inoperative PAN, as transactions come under the purview of income tax.

Once users link their PAN with Aadhaar, their PAN will become operative, and no penalties will be applicable from the date of linking. While people with inoperative PAN cards do not have to apply for fresh PAN card to make it operative. Their inoperative will become valid once the linking is done, as per the Livemint report.

According to the previous report, the Supreme Court, in September last year, had announced the Centre’s flagship Aadhaar scheme as constitutionally valid and stated that the biometric ID would remain necessary for the filing of I-T returns and allotment of the PAN.

Published on March 02, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.