PAN-Aadhar Linking Incomplete? You May Have to Pay Double the Fine

June 16, 2022
|In Financial Fitness, Updates
|By Medha Goswami

 

link PAN aadhar now

If you have PAN and Aadhaar then you will know that it is mandatory to link these two documents. While the previous deadline was 31 March 2022, it is now extended to 30 June 2022 but with a fine of Rs. 500. However, in case you do not link your PAN and Aadhaar cards by the new deadline, get ready to pay double the fine.

Why Should You Link Your PAN with Aadhaar?

In addition to the fact that this step is mandatory, here’s why linking your PAN and Aadhaar is beneficial for you –

  • Linking your PAN-Aadhaar provides the government with an audit trail, which means that financial fraud can be curbed at the source. If both these documents are linked, all transactions can be tracked which can prevent tax evasion and other fraudulent practices.
  • This step is also important to prevent duplication of PAN cards. Individuals would illegally create multiple PAN cards with the aim of avoiding taxes, concealing transactions, and accounts. But once PAN-Aadhar linking is complete, the government can easily track and block duplicate PAN cards.
  • In addition to the above, filing taxes, tracking the status of your ITR, and receiving refunds, if any, will also be much easier if you link your PAN and Aadhaar.

What will Happen if PAN-Aadhaar Seeding is Incomplete?

In case you have not seeded your PAN and Aadhaar numbers despite the multiple requests and imposition of fines, then the following consequences may occur –

  • As per Sec 234H of the Income Tax Act, not linking your PAN with Aadhaar by 30 June 2022 will attract a fine of Rs. 1,000. Only after paying the fine will you be able to link both the documents
  • There is also the risk of your PAN card becoming inoperative if you do not link your PAN with your Aadhaar.  However, even if you do not complete the seeding process by the deadline, your PAN will still be functional until March 2023 to file taxes, claim refunds or other income tax procedures
  • You may also find it difficult to receive government benefits such as LPG subsidy, scholarships, pensions etc., if the PAN-Aadhaar seeding is not done

Steps to Link PAN-Aadhaar Online

Follow the steps given below to link your PAN and Aadhaar easily today –

  • Visit the official website of the Income Tax Department
  • Register if you haven’t already and log in
  • Once you log in, a pop up will appear asking you to link your PAN and Aadhaar
  • However, if this does not appear, you can click on ‘Profile Settings’ in the menu bar and select ‘Link Aadhaar’ option
  • Now provide your PAN number, Aadhaar number, mobile number, and your name
  • Verify all details provided and click on ‘I agree to validate my Aadhaar details’ and select ‘Continue’
  • You will then receive an OTP (one-time password) on your registered mobile number which will have to be entered on the screen. Next click on ‘Validate’
  • You will then be asked to pay the fine of Rs. 500 after which your PAN-Aadhaar seeding will be completed

Linking your PAN and Aadhaar numbers is mandatory and comes with a number of benefits. While the earlier deadline was 31 March 2022, it has now been extended to 30 June, 2022. In order to avoid paying a fine of Rs. 1,000, it is important to seed both numbers at the earliest. Follow the steps given above to easily complete this process from the comfort of your home.