If you have not yet linked your Permanent Account Number (PAN) and Aadhaar Card, then this negligence is going to outweigh you. You will not only face a penalty of Rs 10,000, but your PAN will also become illegal. You only have time till 31 March 2021, link PAN and Aadhaar immediately.
This is part of a new amendment to the Finance Bill, 2021, passed in the Lok Sabha on Tuesday. While passing this Finance Bill, 2021, the government has added a new section (Section 234H) in the Income Tax Act, 1961, which will impose a penalty on those who will not link PAN to Aadhaar till 31 March 2021.
Although the penalty will be less than 1000 rupees, it will not be more than this. The government will fix the amount of penalty on those who will not link PAN to Aadhaar before the scheduled time. But the problem will be that the PAN of such people will be ‘inoperative’, that is, it will not be used for any financial work because PAN is a mandatory document for all financial work.
The people who are thinking the penalty of 1000 rupees is less, then they should understand that much of their work may get stuck like PAN is required to file income tax, but if PAN is ‘inoperative’, then you will not be able to pay your income tax Due to which you can be fined heavily, and this fine can be up to Rs 10,000. That means a fine of 10,000 rupees and a fine of 1,000 rupees.
If a person gives the details of canceled or ‘inoperative’ PAN, then such PAN cardholders will not only be considered as Non-Pan Holders, but they will be fined Rs 10,000 under Section 272B of the Income Tax Act. can also be applied. Tax experts say that TDS can be cut even more if PAN becomes ‘inoperative’. Under the Income Tax Act, if a person does not provide information about his PAN, then he incurs heavy TDS or TCS.
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