Aadhaar PAN Link: Waiting for deadline extension? MUST check this amendment in Finance Bill; here is your guide to avoid penalty, late fine

Aadhaar PAN Link: PAN Aadhaar link last date to get it done is 31st March, 2021 and like previous occasions, people have presumed that there will be an extension in Aadhaar PAN linking deadline set b the government. However, for such people, there is a piece of caution as the Narendra Modi Government had earlier announced a late fine of up to Rs 1,000 to be imposed in case a person fails to link Aadhaar Card with PAN Card. As per the new section inserted in the Finance Bill presented in the Lok Sabha, failing to carry out PAN Aadhaar seeding by the given deadline will incur late fee up to Rs 1,000. Importantly, this late fee will be exclusive from other penalties for holding an inoperative PAN Card.

As per the Section 234H of the Finance Bill (Lok Sabha), "Without prejudice to the provisions of this Act, where a person is required to intimate his Aadhaar number under sub-section (2) of section 139AA and such person fails to do so on or before such date, as may be prescribed, he shall be liable to pay such fee, as may be prescribed, not exceeding one thousand rupees (Rs 1,000), at the time of making intimation under sub-section (2) of section 139AA after the said date.”

This Rs 1,000 late fee will be exclusive from other penalties for holding an inoperative PAN Card. The Income Tax Department has already made it clear that failing to do Aadhaar PAN linking by 31st March 2021 will lead to one's PAN Card becoming inoperative. The department has also said that inoperative PAN card holders will have to face consequences under the Income Tax Act for not furnishing PAN with the income tax department. In other words, such PAN card holders will not only be treated as non-PAN card holders but may also be fined a penalty of Rs 10,000 under Section 272B of the Income Tax Act.

How an inoperative PAN Card may lead to penalty
In the case of one's PAN not linked with Aadhaar number, if you go to a bank and try to open an account or deposit/withdraw cash above Rs 50,000 you need to give your PAN card. If you give a wrong or inoperative PAN then you could be fined up to Rs 10,000. Under the provisions, a penalty could be imposed for every such non-compliance due to an inoperative PAN Card.

Having a PAN card is mandatory for several purposes like opening a bank account, buying mutual funds or shares and even making cash transactions of over Rs 50,000. However, all such inoperative PAN cards will become operative as and when the PAN card holder carries out PAN Aadhaar linking. One can do this through an SMS.

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Aadhaar PAN Link at incometaxindiaefiling.gov.in

One can do the PAN Aadhaar link by logging in at the income tax department official website — incometaxindiaefiling.gov.in or at the direct link www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/LinkAadhaarHome.html.

Here is the step by step guide for Aadhaar PAN link at income tax website:

1] Log in at incometaxindiaefiling.gov.in or at direct link www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/LinkAadhaarHome.html;
2] Fill PAN, Aadhaar and Name as on the Aadhaar card;
3] Fill in CAPTCHA;
4] Click at 'Link Aadhaar' option and your PAN Aadhaar Linking will get complete.

One can do the PAN Aadhaar linking via SMS too.

PAN Aadhaar link via SMS
For Aadhaar PAN linking through an SMS, one needs to send an SMS at 567678 or 56161. Format of the SMS is 'UIDAIPAN(12digit Aadhaar number) space (10 digit PAN Number).' Means if someone has an Aadhaar Card number ABCDXXXXXXXXXX and PAN Card number ABCXXXXXXX then the format of the SMS will be "UIDAIPANABCDXXXXXXXXXX ABCXXXXXXX".

PAN Aadhaar Link status check online
However, there are people who have done the PAN Aadhaar Linking but they need to check whether their PAN is seeded with Aadhaar number or not. For that they need to click at the direct link of the Income Tax Department website — incometaxindiaefiling.gov.in/aadhaarstatus. Enter PAN and Aadhaar number and go to the 'View Link Aadhaar Status.' Their PAN Aadhaar Link Status will get displayed on the computer monitor.