New Delhi [India], April 6 : Union Finance Minister Nirmala Sitharaman on Thursday defended the penalty for not linking Permanent Account Number (PAN) with Aadhaar.
Aadhaar-PAN linking was free till March 31, 2022. A late fee of Rs 500 was being imposed since April 1 last year which was later raised to Rs 1,000 from July 1 last. Moreover, the PAN will become inoperative if not linked with Aadhaar before June 30 this year.
During a press conference on Thursday, the Union finance minister said, "The time was given beforehand, Aadhaar-PAN should have been linked whenever possible... The link should be done now," the Union finance minister said.
"If this deadline is over, the amount of fine will increase," she added.
According to a statement from finance ministry issued on March 28, any individual with a PAN must link it with Aadhaar or suffer consequences, including increased tax deducted at source (TDS) and tax collection at source (TCS) deduction.
The statement stated, "Under the provisions of the Income-tax Act, 1961 (the 'Act') every person who has been allotted a PAN as on 1st July, 2017 and is eligible to obtain Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March, 2023, on payment of a prescribed fee. Failure to do so shall attract certain repercussions under the Act w.e.f. 1st April, 2023. The date for intimating Aadhaar to the prescribed authority for the purpose of linking PAN and Aadhaar has now been extended to June 30, 2023."
The PAN of taxpayers who have failed to link their Aadhaar as required will become inoperative on July 1, 2023.
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