PAN card holders will now have to pay 1,000 fine for not linking PAN with Aadhaar card. Before that, the penalty was 500. As per newly inserted section 234H of Income Tax Act (via Finance Bill in March 2021), non-linking of PAN with Base will be fined up to 1,000, but such PAN cards will remain functional for one more year till March 2023 for filing ITR, claiming refund and other IT processes. One can link PAN and Aadhaar after paying the late fee.
Aadhar-PAN Card Linking: How To Pay Late Fee?
As per Income Tax Department the fee to be paid by Challan No. ITNS 280 is with Major Head 0021 (Income Tax other than Companies) and Minor Head 500 (Fees).
Why is it necessary to link PAN-Aadhaar card?
If no one links pan card With Aadhar card, then their PAN card becomes inactive. The problem of a PAN card holder will not end here as the individual will not be able to invest in mutual funds, stocks, open bank accounts, etc., where it is necessary to present a PAN card. Further, under section 272B of the Income Tax Act 1961, if the person produces a PAN card, which is no longer valid, the Assessing Officer may direct that such person shall, as a penalty, pay an amount. 10,000.
How to link PAN Card with Aadhar Card through IT Portal?
Step 1: Open Income Tax e-Filing Portal: incometaxindiaefiling.gov.in
Step 2: Register on the portal. PAN number will be the user ID.
Step 3: Log in to the portal by entering your User ID, Password and Date of Birth.
Step 4: A pop-up window will appear for linking PAN with Aadhaar.
Step 5: If the window does not appear, go to ‘Profile Settings’ on the menu bar and click on ‘Link Aadhaar’.
Step 6: Verify the PAN details as mentioned on the screen on the screen.
Step 7: If the details match, enter your Aadhaar number and click on the “Link Now” button.
Step 8: A message will pop up informing you that Aadhaar has been successfully linked with your PAN.
Other ways in which you can link your PAN with Aadhaar:
- People can also link PAN with Aadhaar card through egov-nsdl.co.in.
- You can link through SMS. Type UIDPAN<12 अंकों का आधार><10 अंकों का पैन>, The message can be sent to 567678 or 56161.
- Visit the PAN Seva Kendras: A form named ‘Annexure-I’ has to be filled and submitted along with a copy of PAN card and Aadhar card. This will be a paid service.