Aadhaar-PAN Link Update: Linking PAN with Aadhaar Just Got Costly – Know the New Penalties Announced!

The central government has made it mandatory to link PAN with Aadhaar to avoid financial fraud. The Income Tax Department has set a deadline of December 31, 2024, for this. If you do not link your PAN and Aadhaar by December 31, your PAN card will be deactivated. This will cause issues in paying taxes, making transactions, and other related problems.

Fine for Linking PAN-Aadhaar

The government initially allowed the linking of PAN cards with Aadhaar for free until June 30, 2023. However, after this date, a late fee of ₹1,000 is now applicable. Earlier, the late fee was ₹500, but it has been increased to ₹1,000. This means that you must now pay ₹1,000 as a fine to link your Aadhaar card with your PAN card.

How Many People Were Fined?

Over 2 crore taxpayers in India linked their PAN with Aadhaar after the free deadline ended. The government has collected a total of ₹2,125 crore as penalties from these taxpayers. As per Section 234H of the Income Tax Act, 1961, individuals must provide Aadhaar information under subsection (2) of Section 139AA. Failure to do so results in a fine of up to ₹1,000.

Total PAN Cards in the Country

According to data from March 2024, more than 74 crore individuals in India possess a PAN card. Of these, 60.5 crore have already linked their PAN with Aadhaar. In response to an RTI in November last year, the Central Board of Direct Taxes (CBDT) revealed that 11.5 crore PANs had been deactivated due to non-linkage with Aadhaar.

How to Link PAN with Aadhaar?

To link your PAN with Aadhaar, follow these steps:

1. Visit the Income Tax website: eportal.incometax.gov.in or incometaxindiaefiling.gov.in.
2. Register by entering your PAN number as the User ID.
3. A pop-up window will appear prompting you to link PAN with Aadhaar.
4. If the prompt does not appear, go to Profile Settings and click on Link Aadhaar.
5. Verify the details of your PAN card, such as date of birth, gender, and name.
6. Ensure these details match with your Aadhaar information, then click on the Link Now button.
7. A message will appear on your screen confirming that your PAN has been successfully linked with Aadhaar.

Following these steps will help you link your PAN and Aadhaar smoothly, avoiding any potential issues in the future.