Individuals who fail to link their PAN cards with Aadhaar by the end of March 31, 2020, will face a fine up to Rs 10,000.
In a double whammy, their PAN cards will turn inoperative and a hefty fine will also be imposed for using an inoperative PAN card, the tax department informed in a new notification.
‘It is worth mentioning that under Section 272B of the Income Tax Act, a person found using an invalid/inoperative PAN card may be fined Rs 10,000,’ the notification read.
As per the Section 272B of the Income Tax Act, 1961, if a person fails to comply with the provisions of section 139A, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees.
There are several complexities that people could suffer from not linking their PAN card with Aadhaar.
People who fail to link PAN card with Aadhaar can use it as ID proof for opening a bank account or for a driving licence without penalty. However, they will not be permitted to make any financial transactions as the PAN becomes inoperative and could fetch a penalty.
The PAN cards will again become operative once the individual links it with the Aadhaar card.
