Link your PAN to your Aadhaar before end of this month (June 2022) to avoid paying penalty. If you link your PAN to your Aadhaar on or before June 30, 2022, you will be charged Rs 500. However, post-June 30, a fee of Rs 1,000 would be required if the PAN-Aadhaar link, as per a circular issued by Central Board of Direct Taxes (CDBT).
As per the press release, "In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated 29th March 2022, a window of opportunity has been provided to the taxpayers up to 31st of March 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. As a result, taxpayers will be required to pay a fee of Rs 500 up to three months from 1st April 2022 and a fee of Rs.1000 after that, while intimating their Aadhaar. However, till 31st March 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc."
Why should you link PAN to Aadhaar
Your PAN will become inoperative next year starting April 1, 2023, if it is not linked with Aadhaar by March 31, 2023. Once your PAN becomes inoperative, you will not be able to file income tax return, open a bank account, invest in mutual funds etc.
Payment of penalty amount
Fees are to be paid by Challan No ITNS 280 with Major head 0021 (Income Tax Other than Companies) & Minor head 500 (Fee), according a recent tweet on the Income Tax Department’s official Twitter account.he fees have now been broken down into their component parts.
"Fee of Rs.500 payable if linked up to 30/06/22, else fee payable is Rs.1000. Fees to be paid by Challan No ITNS 280 with Major head 0021 (Income Tax Other than Companies) & Minor head 500 (Fee). Try to link after 4-5 working days from date of payment.”
