Penalty In Case Of Non-Linking Of PAN-Aadhaar By March 31, 2022

As per the latest Ministry of Finance release dated March 30, 2022- Under the provisions of the Income-tax Act, 1961 ("the Act"), every person who has been allotted a PAN as on 1st July, 2017 and is eligible to obtain Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March, 2022. On failure to do so, his PAN shall become inoperative and all procedures in which PAN is required shall be halted. The PAN can be made operative again upon intimation of Aadhaar to the prescribed authority after payment of a prescribed fee.

Penalty in case of non-linking of PAN-Aadhaar

In accordance with the Notification No.17/2022 dated 29th March, 2022, in case of non intimation or non linking of PAN-Aadhaar by the deadline i.e. today March 31, 2022, taxpayers shall be required to pay a penalty amount of Rs. 500 up to 3 months from April 1, 2022 and a fee of Rs.1000 after that, while intimating their Aadhaar.

PAN to remain functional even on non PAN-Aadhaar linking till March 31, 2023

The latest release further stated, "In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated 29th March, 2022, a window of opportunity has been provided to the taxpayers upto 31st of March, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions". Consequently till 31st March, 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc.

After 31st March, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers.

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