Consequences of not linking PAN with Aadhar Card

 

Deadline for PAN Aadhaar Linking is 31st March 2023

For every person who is eligible to obtain an Aadhaar Card, it is mandatory to link the Aadhaar Card with the PAN Card before 31st March 2023

 

Exemption for linking Aadhaar with PAN

1. Residing in the States of Assam, Jammu and Kashmir and Meghalaya;
2. A non-resident as per the Income-tax Act, 1961;
3. Of the age of eighty years or more at any time during the previous year;
4. Not a citizen of India.

 

Consequences of not linking PAN with Aadhar Card

 

There are various consequences of not linking PAN and Aadhar Card for eligible individuals under the IT Act 1961, which are:

1. Section 206AA: TDS will be deducted at a higher rate

2. Section 206CC: TCS would be collected at a higher rate

3. Section 234A, 234B, 234C: Taxpayers will not be able to file their ITRs; Penalty of up to Rs.10,000/- u/s 234F

4. Section 234H: Taxpayer will only be able to make the PAN operative after linking with the Aadhar Card and paying a fee/penalty of up to Rs.1000/-

5. Section 272B: It is mandatory to quote PAN for certain financial transactions as per section 139A. If the PAN is not linked, it will become inoperative/invalid and this would result in non-compliance with the provisions of Section 139A which would attract a penalty up to Rs.10,000/- u/s 272B.