Government accumulates Rs 600 crore in late fees as PAN-Aadhaar linking deadline passes

PAN-Aadhaar linking deadline: Minister of State for Finance Pankaj Chaudhary, in the Parliament on Monday, February 5, said that the government has successfully collected over Rs 600 crore in penalties from individuals who failed to link their Permanent Account Numbers (PAN) with Aadhaar within the stipulated timeframe. Despite the warning and the imposition of late fees, a staggering 11.48 crore PANs remain unlinked with Aadhaar as of January 29, 2024.

Chaudhary, responding to queries in the Lok Sabha, disclosed that the number of PANs yet to be linked with Aadhaar, excluding exempted categories, stands at 11.48 crore.

Regarding the revenue generated through late penalties of Rs 1,000 imposed on individuals who missed the June 30, 2023, deadline, Chaudhary provided details. From July 1, 2023, to January 31, 2024, the government amassed a total of Rs 601.97 crore in fees from individuals who failed to link their PANs with Aadhaar within the specified timeframe.

The Income Tax department had previously communicated that the PANs of individuals who did not link them with Aadhaar by June 30, 2023, would become inoperative. This would result in no refunds being issued against such PANs, and higher rates of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) would be applicable. However, individuals have the option to reactivate their PANs by paying a late fee of Rs 1,000.

The government's robust collection of penalties underscores the importance of adhering to regulatory deadlines, and the substantial number of unlinked PANs highlights the ongoing challenges in achieving universal compliance with Aadhaar integration.

(With PTI inputs.)