Income Tax Alert: Urgent notice of income tax to PAN card holders, may have to pay fine up to Rs 10,000

The Income Tax Department has issued an urgent notice to the PAN card holders saying that the PAN Aadhaar link has been made mandatory.

The Income Tax Department has said that PAN cards will become inactive from April 1, so if PAN holders do not link it within the stipulated time, they may have to face huge losses. At the same time, a fine of Rs 10,000 can also be imposed for using an inactive PAN.

The Income Tax Department has told the PAN card holders that please do not delay, link your PAN with Aadhaar today itself. The Income Tax Department has said through an urgent notice that according to the Income Tax Act 1961, all PAN holders who do not come under the exemption category, should link their PAN number with Aadhaar number before March 31, 2023.

PAN will be deactivated from April 1

The Income Tax Department has said that in case the PAN card is not linked to Aadhaar, from April 1, 2023, your PAN will be canceled under Section-139AA of the Income Tax Act. After this the PAN card cannot be used.

10,000 fine for using inactive PAN

According to the Income Tax Act, there is a provision to impose a fine of Rs 10,000 for using an inactive PAN card. Therefore, those who have PAN card and are not eligible for the exemption given by Income Tax, they will have to link it before March 31, 2023.

Link now by paying late fee:

According to the Income Tax Department, till July 1, 2022, the process of linking PAN with Aadhaar has been free. But, after July, now the deadline to link PAN has been extended till March 31, 2023 and for this PAN holders will have to pay Rs 1,000 as late fee.

How to do PAN-Aadhaar Link

The online process of linking PAN with your Aadhaar is very easy and it takes a while. Let’s know the process of online linking step by step.

1. PAN card holders first go to the e-filing website of the Income Tax Department (www.incometaxindiaefiling.gov.in).
2. After this register yourself on the website. Here PAN number will be your user ID.
3. Now login by entering User ID, Password and Date of Birth.
4. On the website you will see an option ‘Link Aadhaar’, click on it.
5. After this go to the profile setting of your account.
6. An option to link Aadhaar card will appear in the profile setting, select it.
7. After this enter your Aadhaar number and captcha code.
8. Now click on the ‘Link Aadhaar’ option shown below.
9. After completing this process, your PAN card will be linked with Aadhaar.