Monday, June 27, 2022

PAN CARD HOLDERS COULD BE FINED ₹10,000 FOR NOT LINKING IT WITH AADHAAR

NEW DELHI: If you fail to link your PAN card with your Aadhaar card within the deadline of March 31, then the income tax department sways inflict a penalty of ₹10,000 on you for using an ineffectual Permanent Account Number. The income tax department had earlier stated that all unlinked PAN cards will be reported as “inoperative” and now it has declared a new warning saying that such Permanent Account Number cardholders shall face consequences following the Income Tax Act for not furnishing Permanent Account Number.

“Typically, when a Permanent Account Number becomes inoperative, it will be considered that PAN has not been furnished/quoted as needed by the law and a fine of ₹10,000 may apply as per Section 272B of the Income Tax Act,” BankBazaar CEO Adhil Shetty said.

At the appearance of it, using a PAN card as ID proof for non-tax related plans like opening a bank account or applying for a driving license should not attract a fine.

However, there can be difficulties if the bank account opened using an inoperative PAN has transactions that cause it under the purview of income tax. For example, if you deposit or withdraw cash above ₹50,000 PAN card is needed.

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Nangia Andersen Consulting’s associate director Mridhu Malhotra said considering the fine provisions under Section 272B and the current notification it can be defined that an inoperative Permanent Account Number will tantamount to non-furnishing and non-quoting of Permanent Account Number which is compulsory as per section 139A of the Act. Section 272B(1) imposes a fine of ₹10,000 for non-compliance.

“In addition, in case of defined transactions the fine would be forced for each such default i.e. for every single non-compliance for the particularized transaction the assessee will have to pay the fine,” Malhotra said.

However, once you link your PAN and Aadhaar, the Permanent Account Number becomes operative, and no fines shall be relevant post the date of linking. Those with inoperative PAN cards must remember that they must not reapply for a new PAN card as once the linking is done, the PAN card becomes valid once again.

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