A message is circulating on social media claiming that if the PAN (Permanent Account Number) card is not linked to the Aadhaar card within the deadline i,e., March 31, 2021, then it might invite a penalty of Rs 10,000. Many people are sharing an image with the text on it that says, “The last date for linking PAN card with Aadhaar card is 31st March. In case you don’t do it, your PAN will become invalid. A penalty of Rs 10,000 may apply if you fail to link the two documents within the deadline.”
It is essential for a person to link an Aadhaar card with a PAN card under Section 139 AA (2) of the Income Tax Act 1961. If the Aadhaar card is not linked with the PAN card, then the PAN card becomes inoperative, and a Pan card is mandatory for opening a bank account and also to have transactions of more than Rs 50,000. At the same time, according to Section 272 (B) of the Income Tax Act, the assessing officer may impose a penalty of Rs 10,000 if one fails to comply with the provisions of section 139A.
In a bid to provide relief for taxpayers, the government has extended the deadline for linking PAN card with the Aadhaar card till June 30. Earlier, the date of linking these two documents was March 31.
This decision was taken in the aftermath of increasing COVID-19 cases in India and the difficulties faced by people due to it, the Income Tax Department said in a tweet.
“Central Government extends the last date for linking the Aadhaar number with PAN from 31st March 2021 to 30th June 2021, in view of the difficulties arising out of the COVID-19 pandemic,” it said. A user can also link PAN with Aadhaar online by just sending an SMS. To link PAN with Aadhaar, you will have to send an SMS to 567678 or 56161 through your registered mobile number. In the text message, just type, ‘UIDAIPAN (12digit Aadhaar number) space (10 digit PAN Number).’ For example: UIDPAN 100023456789 XXYZ0123X
Thus, if the PAN card is not linked with the Aadhaar card, then a fine of Rs 1000 will be imposed, not Rs 10000 as per the claims. The penalty will be imposed under Section 234 H of the Income Tax Act 1961. The government had notified about this on March 23, at the time of passing Finance Bill, 2021 in the Lok Sabha.
