Finance Minister, Nirmala Sitharaman announced that the deadline to link PAN with Aadhaar has been extended yet again to June 30, 2020. The earlier deadline was March 31, 2020. For those who are yet to link their PAN with Aadhaar, this extension will come as a relief.
Consequences of not linking PAN and Aadhaar:
As per the current income tax laws, not linking the two documents will lead to the PAN becoming ‘inoperative’. The income tax department had earlier announced that any PAN that is not linked will be declared as “inoperative.” Now, in its latest notification, the IT department has clearly mentioned that such PAN cardholders shall face consequences under the Income Tax Act.
How to link PAN-Aadhaar:
1. Through e-Filing website
Step 1: Visit Income Tax Site
Step 2: Enter the PAN, Aadhaar number, and name as mentioned in the Aadhaar card
Step 3: Tick the square if only the birth year is mentioned in the Aadhaar card
Step 4: Enter the Captcha code. (Visually challenged users can request for an OTP instead of the captcha code. The OTP will be sent on the registered mobile number)
Step 5: Click on the ‘Link Aadhaar’ button.
Citizens can simply link their PAN-Aadhaar cards on the websites of Income Tax department, NSDL e-Governance Infrastructure Limited, and UTI Infrastructure Technology and Services Limited (UTIITL) by providing their PAN card number and Aadhaar number.
2. Through SMS
In order to link PAN-Aadhaar through SMS, send an SMS to 567678 or 56161 from your registered mobile number in the format- UIDPAN<SPACE><12 Digit Aadhaar Number><SPACE><10 Digit PAN>. For instance, UIDPAN 123456789000 EPOPE1234E. There is no charge being levied on the SMS sender by NSDL or UTI. They have to pay the SMS charges being levied by the mobile operator company.
What happens if your PAN card is inoperative?
If you fail to link the two documents by the deadline and your PAN becomes inoperative, it is be assumed that PAN has not been furnished as required by the law and a penalty of Rs 10,000 may apply as per Section 272B of the Income Tax Act.
Although, if you use your PAN card as an identity proof for purposes which are not related to tax such as opening a bank account, applying for a driving licence, etc., it should not attract a penalty. However, complications may arise if the bank account opened using a non-functional PAN has transactions that bring it under the purview of income tax…Read more>>
Source:-techiyogiz
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