The government of India has made it mandatory for people to link their Permanent Account Number or PAN card with their Aadhaar identification number. However, linking now entailed a penalty fee of Rs 500. If any individual has still not linked their PAN with Aadhaar, they will have to pay a heftier penalty as the amount will double after June 30. From July 1, any person wanting to link their Aadhaar with PAN will have to pay a penalty of Rs 1,000.
It was made mandatory by the Income Tax Department to link PAN-Aadhar till 1 March 2022 as per the provisions of the Income Tax Act, 1961. However, the deadline for linking PAN-Aadhaar has been extended by the Central Board of Direct Taxes (CBDT) to 1 March 2023.
If the linking of PAN-Aadhaar is not completed as per the deadline, a person’s PAN can become inoperative. As a result, the individual will not be “able to furnish, intimate or quote his PAN and shall be liable to all the consequences under the Act for such failure,” as per the CBDT circular dated March 30, 2022.