Rs.10,000 fine for not linking PAN with Aadhaar
The Income tax department will levy a fee of Rs.10,000 if you fail to link your PAN card and Aadhaar before 31 March 2020. This penalty is also levied if you quote the wrong PAN or Aadhaar number. Section 272B of the Income-tax Act in Budget 2019 has been amended by the government to include this fee for non-compliance.
Although the IT department had announced that all PAN cards that are unlinked would be deemed as “inoperative”, this new notification says that defaulters will have to shell out money as a penalty.
2 March 2020
Haven’t linked your PAN to Aadhaar? Your PAN card may become invalid
According to the 2019 budget, taxpayers in India can now file their Income Tax Returns by quoting their Aadhaar number.
In light of this, the Income Tax Department has stated that all PAN cards not linked to Aadhaar by 31 August 2019 will be deactivated and people will have to quote their Aadhaar number while filing their taxes.
Moreover, for those who quote their Aadhaar details while filing taxes, the Income Tax Department will issue these people new PAN numbers. This new number will be linked to the Aadhaar number that you have quoted while filing your taxes. The PAN number issued will be a virtual PAN number.
Of the 4 crore PAN cards in India, only around 2.2 crore have been linked with Aadhaar.
This being said, as per the latest CBDT announcement, the last date to link your PAN to your Aadhaar is 30 September 2019. More clarity on this issue is awaited.
16 July 2019
How to Avoid Income Tax Return Rejection
As per the guidelines set out by the Income Tax Department, all citizens must link their PAN card to their Aadhaar card by September 2019. Failure to do so will result in the individual’s Income Tax Returns (ITR) being rejected. Moreover, individuals who fail to link these two cards will not be able to make any banking transaction which exceeds Rs.50,000.In order to prevent any of these two situations from occurring, do ensure that you have linked your PAN card to your Aadhaar card. If you haven’t, you can always do so either online or via SMS.
If you haven’t linked your PAN card to your Aadhaar card yet, do it now. This will ensure that your ITR is not rejected.
20 May 2019
Following Sc’s Verdict Verification For Purposes Like Investment, Banking To Become Time-consuming
The Supreme court’s decision on Aadhaar is expected to badly affect mutual funds, insurance companies, banks as well as fintech companies. Given that, the apex court disallowed private parties from obtaining the Aadhaar details of the citizens, banks, fintech companies, mutual funds houses, and insurance companies would need to revert to the old practice of physical verification.
It needs to be mentioned that the Supreme Court on last Wednesday stated that Aadhaar was no longer needed for opening a bank account, insurance policy, and NPS account. The court added individuals would not be required to provide the 12-digit unique number for availing credit cards and landline/mobile connections, making mutual fund investments, operating mobile wallets, and collecting the pension.
Even though the verdict strictly mentioned that Aadhaar can’t be used for the above-mentioned purposes, there are divergent views on the matter. Certain fintech companies believe that the verdict allows regulated entities to offer eKYC for individuals, who share their Aadhaar details voluntarily. The companies believe if they are not allowed to carry out online verification of Aadhaar, the cost of accessing credit may go up.
15 October 2018