Due date for linking of Aadhar with PAN is being extended for last 3-4 years and as of now the latest due date for linking of Aadhar with PAN is 31.03.2021.
Many learned people and known platforms were mentioning that if one does not link Aadhar with PAN they will have to pay penalty of Rs. 10,000 without quoting any section/ notification but we had mentioned earlier also that as on date there is no penalty provision for penalizing non linking of Aadhar with PAN. To read that article CLICK HERE.
Linking of Aadhar with PAN was brought in action vide notification no. 7 of 2017 Dt. 29.06.2017 wherein CBDT had exercised its power u/s 139AA(2) and mentioned the procedure for linking of Aadhar with PAN. However due date of such procedure was continuously being extended vide various notification.
As of now the last date for linking of Aadhar with PAN is 31.03.2021, however till date also there was no section to penalize anyone who does not link Aadhar with PAN but same was changed by Finance Bill 2021.
Finance Bill 2021 was passed in Lok Sabha on 23.03.2021 with various amendments to original Finance Bill presented in Lok Sabha on 01.02.2021.
The Finance Bill, 2021 passed in Lok Sabha has introduced a new section 234H to ensure penalty for those who don’t link PAN with Aadhar. Section 234H read as under:
“Without prejudice to the provisions of this Act, where a person is required to intimate his Aadhaar number under sub-section (2) of section 139AA and such person fails to do so on or before such date, as may be prescribed, he shall be liable to pay such fee, as may be prescribed, not exceeding one thousand rupees, at the time of making intimation under sub-section (2) of section 139AA after the said date.”
As per the above provision the penalty which can be levied under the said provision would be as may be prescribed which will not be exceeding Rs. 1,000.
Therefore as of now the late fee has not been announced and we will have to wait for amendment in Income tax rules for same but maximum late fees that can be levied would be Rs. 1,000.
To know the procedure for linking Aadhar with PAN CLICK HERE.
Although the new penalty provision has been inserted but now when PAN and Aadhar can be used interchangeably then in that case there should not be any penalty for not linking PAN with Aadhar as both the documents can be used interchangeably.
Further, there should be some mechanism where government sends notification to the assessee who has not yet linked his Aadhar with PAN.