How To Pay Penalty To Link PAN With Aadhaar After Deadline?

The Government of India has made it mandatory for individuals to link their Permanent Account Number (PAN) with their Aadhaar card. The deadline for linking Aadhaar and PAN is June 30, 2023, failing to do so within the specified deadline can result in a penalty. If you miss the deadline and need to pay the penalty, this article will provide you with a step-by-step guide on how to do so conveniently..

Penalty of PAN- Aadhaar Linking

Starting from July 1, 2022, individuals who wish to submit an Aadhaar-PAN linking request on an e-filing portal will be required to pay a fee of Rs 1000. This fee must be paid in a single challan prior to submitting the request.

Importance of linking PAN with Aadhaar card

• When a PAN card is not linked to an Aadhaar card, it loses functionality.
• The IT department may reject the ITR if PAN and Aadhaar are not linked.
• When requesting government services like opening a bank account, registering for a passport, or receiving subsidies, PAN and Aadhaar cards must be submitted. As a result, when PAN and Aadhaar cards are not connected, it is impossible to obtain government services.
• If the PAN and Aadhaar are not linked, it may be challenging to obtain a new PAN card if the old one is lost or damaged because the Aadhaar card number must be included when filing for a new PAN card.

What if PAN- Aadhaar is not linked till 30th June 2023?

• Taxpayers who have invalid PAN cards are unable to file ITRs or make ITR claims.
• Both the pending refunds and the processed returns won't be sent to PAN cards that aren't functional.
• A higher rate of TCS/TDS will be applicable.
• Both the TCS/TDS credit and TCS/TDS certifications won't be shown on Form 26AS.
• The submission of 15G/15H declarations for no TDS by taxpayers is prohibited.
• Since the PAN card will no longer be functional, the following transactions are not possible:
• Create a banking account.
• Card issuance for debit and credit.
• purchase of mutual fund shares costing more than Rs. 50,000.
• A day's worth of cash deposits at a bank or post office cannot exceed Rs. 50,000.
• purchasing more than Rs. 50,000 worth of bank draughts or pay orders in one day.
• a time deposit with a bank, nidhi, non-banking financial corporation (NBFC), etc., totaling more than Rs. 2,50,000 in a fiscal year or exceeding Rs. 50,000.
• payment by a bank draught, pay order or banker's cheque totaling more than Rs. 50,000 in a fiscal year for one or more prepaid payment instruments as defined by the Reserve Bank of India (RBI).
• Any transaction involving the sale or acquisition of goods or services by a person for more than Rs. 2,000,000.

Banks authorized for e-Pay Tax

• Axis Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank,
• Central Bank of India,
• City Union Bank,
• Federal Bank,
• HDFC Bank,
• ICICI Bank,
• IDBI Bank,
• Indian Bank,
• Indian Overseas Bank,
• IndusInd Bank,
• Jammu & Kashmir Bank,
• Karur Vysya Bank,
• Kotak Mahindra Bank,
• Punjab National Bank,
• South Indian Bank,
• UCO Bank,
• Union Bank of India

How to link Pan-Aadhaar with a penalty?

• Log in to https://www.incometax.gov.in/iec/foportal/
• Click Link Aadhar in the Profile Section of the Dashboard's Dashboard after selecting Link Aadhar to PAN.
• Enter your PAN and Aadhar numbers.
• Select Continue to Pay Through e-Pay Tax.
• To receive an OTP, enter your cell number, PAN, and confirm PAN.
• Once OTP has been verified you will be taken to the e-Pay Tax page.
• Click on the Income Tax Tile's Proceed button.
• Click Continue after selecting the AY as 2024-2025 and the kind of payment as Other Receipts (500).
• Once the money has been paid, you can link your Aadhaar number to your PAN on the e-Filing Portal.