The Income Tax Department of India had already announced that the PAN card of the individual will be deactivated, in case it is not linked to their Aadhaar by the final date set by the government. They've further decided to impose a sum of Rupees 10,000 as a fine as well. The decision is based on the severe consequences that fall under the Income Tax Act of India (IT Act).
PAN Will Become Invalid If It Is Not Linked To Your Aadhaar By 31st March
The IT Department of India has issued a notification which states that any person who continues to use a cancelled PAN after the 31st of March 2021 will be charged a fine of Rupees 10,000. This fine will be imposed based on the Section 272 B that comes under the IT Act. Your PAN card will become inactive as well. This was stated in the notification issued by the IT department.
What happens if your PAN card is cancelled?
In case your PAN card gets cancelled you are likely to face several problems including the following:
You cannot open a new bank account or a new loan account
No banking or financial transactions can be done
You cannot make investments in shares or mutual funds
You cannot buy a new property or sell a property
You cannot buy luxury vehicles
You cannot purchase luxury goods
The Final Date For Linking PAN To Your Aadhaar
Currently, the final date for linking your PAN to your Aadhaar has been decided as the 31st of March 2021. Over the past few years, the final date for linking your PAN to your Aadhaar has been extended several times. Hence, it is highly unlikely that this date would be further extended.
The Aadhaar issued by the UIDAI is the most important document used to prove an Indian citizen’s/resident’s identity. The identity of an individual can be confirmed through Aadhaar eKYC. Aadhaar eKYC is done through Aadhaar authentication.
The biometric information and demographic details of the individual get submitted to the UIDAI (Unique Identification Authority of India). The UIDAI matches the information shared with the information stored on their database and confirms it with a 'Yes'/ 'No'.
Over 32.71 Crores of PAN holders have linked their PAN to their Aadhaar
This was tweeted by My Gov India on their Twitter Account.
Based on the number of cards distributed till the 29th of June 2020 there are 50.95 Crore PAN cardholders.
However, over 18 Crore PAN holders are yet to link their PAN to their Aadhaar
It is not enough that you quote your Aadhaar number. Biometric authentication is also mandatory.
Failing to provide your Aadhaar Number/PAN Number to carry out a financial transaction would also lead to a fine.
To make the process of filing taxes easier, the IT department of India has permitted individuals to quote their 12 digit Aadhaar number instead of their PAN number. However, you have to be cautious enough. Quoting the wrong number could also end you up with a fine of Rupees 10,000.
For more information contact us. We, Finahub, are experts in Aadhaar related products and services like eSign, eKYC, Authentication, etc. If you want to know how your enterprise can start using it, please give us a call @ 0484 2388285 or email us at [email protected]
