How to Pay Rs. 1000 Fine to Link Aadhaar with PAN?

Penalty for PAN-Aadhaar Linking: The penalty for linking PAN and Aadhaar has been doubled as of July 1, Friday, which is today. The PAN-Aadhaar linking fine was Rs 500 until June 30, but it has been raised to Rs 1000 as of July 1 by the Central Board of Direct Taxes, or CBDT. The top tax board has extended the deadline for linking PAN-Aadhaar to March 31, 2023, but those who have yet to link will face a Rs 1,000 fine starting today.

Current regulations require you to link your Permanent Account Number (PAN) and Aadhaar number. If the two are not linked, their PAN cards may become 'inoperative,' according to the Central Board of Direct Taxes (CBDT). You will be unable to conduct financial transactions as a result. While the deadline for connecting the two without paying a fine has passed, you can still do so by paying a fine of Rs 1,000.

This can be done by paying the amount under Challan No. ITNS 280 with Major head 0021 (Income Tax Other than Companies) and Minor head 500 on the National Securities Depository Limited (NSDL) portal (Other Receipts).

How to Pay Fine for Linking PAN and Aadhaar on Income Tax Portal?

If someone wants to link their PAN and Aadhaar now, they must pay a penalty of Rs 1,000. This can be accomplished by using Challan No. ITNS 280 to make a payment on the NSDL portal. Late fees can be paid using Challan No. ITNS 280 with Major head 0021 (Income Tax Other than Companies) and Minor head 500 on the Income Tax Department's Tax Information Network website (Other Receipts).

How to Pay PAN Aadhaar linking Late Fees

Step 1: Go to https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp to continue with your Aadhaar PAN link request.

Step 2: Select Challan No. ITNS 280 from the list of available options to submit a PAN-Aadhaar link request.

Step 3: Next, choose the appropriate tax.

Step 4: Make a single challan payment under Major head 0021 (Income Tax Other Than Companies) and Minor head 500. (Other Receipts).

Step 5: You can pay with a credit card or through net banking. Fill out the form after selecting your preferred mode.

Step 6: Enter the details such as PAN, address, and assessment year.

Step 7: Enter the Captcha and pay

After payment, taxpayers should try submitting a PAN-Aadhaar linkage request after 4-5 days, as payments made at NSDL (now Protean) take a few days to appear on the e-Filing site.It should be noted that payments made through the NSDL portal take some time to appear on the income tax e-filing portal.

What Happens If PAN and Aadhaar Aren't Connected?

While the CBDT has extended the deadline for linking PAN and Aadhaar, the work must be completed. If an individual (who is eligible to receive the Aadhaar number) fails to link his/her Aadhaar to PAN by March 31, 2023, his/her PAN may become inoperative, and all of the consequences under the Income Tax Act, 1961 for not furnishing, informing, or quoting the PAN shall apply to such individuals. As a result, after March 31, 2023, such individuals will be unable to conduct financial transactions requiring PAN disclosure, file income tax returns, open a bank account, or invest in mutual funds. Furthermore, the income tax authority will not process pending returns or complete proceedings in relation to such individuals' defective returns.

ITRs will not be processed

Users should be aware that, while income tax returns can be filed without linking the two, the department will not process them until the PAN and Aadhaar are linked.

Savings in a bank account will be affected

This will also result in an individual's KYC being incomplete, as a PAN card is one of the required documents for KYC completion. This will have an effect on one's bank account savings. Furthermore, if the individual earns interest on savings in excess of Rs 10,000, the tax deducted at source (TDS) rate will be 20%, as TDS levied on a bank account without a PAN card is doubled.