PAN-Aadhaar linking deadline: 7 important FAQs you should know

General

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Mar 29, 2022 

The last date to link one's PAN with Aadhaar is March 31, 2022. If both these documents are not linked by March 31, then there will be numerous consequences faced by an individual. For instance, if the PAN is not linked with Aadhaar by March 31, then firstly your PAN will become inoperative. Once the PAN becomes inoperative, then you won't be able to conduct various financial transactions such as opening of bank account, investing in shares, mutual funds etc. or wherever quoting of PAN is mandatory such as lower deduction of tax from salary, interest income etc.

As per tax experts, once the PAN become inoperative and it has to be quoted/furnished somewhere, then he/she may be liable to pay penalty under the Income-tax Act, 1961. As per section 272B, a penalty of Rs 10,000 may be levied. However, you can link the PAN with Aadhaar after the expiry of deadline by paying a penalty. This penalty will be levied under section 234H.
Though the government is yet to announce the penalty amount, the maximum amount will not exceed Rs 1,000 for linking PAN with Aadhaar after the deadline. Once the penalty has been paid and linking process has been done, then PAN will once again become operative and can be used to conduct financial transactions. Here is a look at seven important FAQs published on the Income Tax Department's website about linking PAN with Aadhaar.

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