What Penalty To Bear If You Don’t Link PAN With Aadhaar Number? It is required to link Pan to Aadhaar Number, according to government regulations. Finance Act, 2017, added Section 139AA to the Income-tax Act, 1961. This section requires that every person eligible for the Aadhaar must quote his Aadhaar number when applying for PAN or furnishing an income return. Section 139AA also states that any person who was allocated a PAN on July 1, 2017, and is eligible for the Aadhaar Number, must provide his/her Aadhaar number. If the Aadhaar number is not provided, PAN will be deemed inoperative.
The consequences of not linking PAN and Aadhaar number
The Central Board of Direct Taxes issued Rule 114AAA describing the procedure and consequences for a PAN becoming inoperative. Rule 114AAA(2) states that a person whose PAN is inoperative shall be deemed to have not furnished, intimated, or quoted the PAN. He/she will be liable for any and all consequences under the Act for failing to furnish, intimating, or quoting the PAN. The person can however reactivate his PAN by intimating his Aadhaar again to the Department.
A person who fails to link PANAadhaar before the due date will be subject to Rs. 1,000 fees. 1,000 under section 234H. A fee of Rs. will be charged if a person intimates his Aadhaar number later than the due date. If the intimation was made between April 1, 2022, and June 30, 20,22, it will be charged at Rs. 500. In all other cases, 1,000. The CBDT has notified that the Income-tax Act provides for penalties for not furnishing or intimating PAN.