PAN Not Linked With Aadhar? Card Holders May Attract Penalty Of Rs 10,000 If Miss March 31 Deadline

If PAN card becomes inoperative, the I-T department will consider that the person has not furnished PAN, and hence, liable to face consequences for his act

A PAN card is mandatory for opening of bank account, buying mutual funds, buying shares, and making cash transactions of over Rs 50,000. Image: Getty

New Delhi: From April 1, 2022, your PAN (Permanent Account Number) card will stop functioning if it is not linked with Aadhaar card.

The income tax (I-T) department has recently extended the deadline of linking PAN with Aadhaar until March 31, 2022.

PAN cards, which are not linked to Aadhaar cards, would be declared inoperative after March 31. A penalty of Rs 10,000 can also be levied upon defaulter each time the individual fails to furnish PAN card details.

The central government has made linking of PAN card with Aadhaar compulsory in order to make things transparent, especially during financial transactions.

According to Section 272B of I-T Act, a fine of Rs 10,000 can be levied upon defaulter if found PAN is not furnished or quoted according to the I-T law.

If your PAN becomes null and void, the I-T department will consider that the person has not furnished PAN, and hence, liable to face consequences for his act.

Earlier, the Central Board of Direct Taxes (CBDT) had said in a statement, “When a person, whose PAN has become inoperative is needed to submit, intimate or quote his PAN under the Act, it shall be deemed that he has not furnished, intimated or quoted the PAN, as the case may be, in accordance with provisions of the Act, and he shall be liable for the consequences under the ACT for not furnishing, intimating or quoting the PAN.”

A PAN card is considered mandatory for many reasons such as opening of bank account, buying mutual funds, buying shares of companies, and making cash transactions of over Rs 50,000.