As per Section 139AA of the Income Tax Act, 1961, it is mandatory for every taxpayer in India to link PAN with Aadhaar.
The deadline for linking Permanent Account Number (PAN) with Aadhaar has already passed and now the government has started imposing penalties on defaulters. The deadline for linking PAN with Aadhaar was June 30, 2023.
PANs not linked to Aadhaar numbers became inactive from July 1 last year. Those who miss the deadline are liable to pay a penalty of Rs 1,000.
In February, Minister of State for Finance Pankaj Chaudhary informed Parliament that the number of PANs not linked to Aadhaar as of January 29, 2024 was 11.48 crore. The government had collected around Rs 600 crore as penalty from the defaulters.
As per Section 139AA of the Income Tax Act, 1961, it is mandatory for every taxpayer in India to link PAN with Aadhaar. Otherwise, they cannot file their Income Tax Return (ITR). Earlier, the IT department had announced that the last date for PAN-Aadhaar link was March 31, 2022. Later the deadline was extended to June 30, 2023.
Those who completed PAN-Aadhaar linking from July 1, 2023, will have to pay a penalty of Rs 1,000.
Taxpayers can now link their PAN with Aadhaar through the Income Tax Department’s e-filing portal by paying the mandatory late penalty under Section 234H of the Income Tax Act, 1961.
Here’s how to pay penalty and link PAN-Aadhaar online
Visit the e-filing portal and click on the Aadhaar link from the Quick Links section on the homepage. You can also log in to the e-filing portal and click on ‘Link Aadhaar’ in the profile section.
1. Key your PAN and Aadhaar number in the designated box
2. Click on “Continue payment through E-Pay Tax”.
3. Enter your PAN and confirm it. You will receive an OTP on the registered mobile number.
4. Once the OTP verification is done. The e-Pay Tax page will appear on the screen.
5. Click on Proceed to Income Tax button and select the relevant assessment year and type of payment as Other Receipts (500).
6. Click on Continue to get the applicable prepayment amount.
7. A challan will be generated. Once the payment is completed, Aadhaar can be linked with PAN through the e-filing portal.
Once everything is done, you can check the PAN-Aadhaar linking status by clicking on the “Aadhaar Status” link available on the homepage of the e-filing portal.