Link your PAN with Aadhaar by March-end to avoid Rs10,000 fine


The Income Tax department might impose a penalty of Rs 10,000 on those who don’t link their PAN card with Aadhaar card within the deadline of 31 March 2020. The I-T department had earlier said that un-linked PAN cards will become inoperative if not linked with Aadhaar by March 31.

If the PAN card becomes inoperative, then the assessing officer shall levy Rs 10,000 under section 272 B of the Income tax Act. As of February 15, nearly 17.58 crore PANs had not been linked to Aadhaar, according to Income Tax department.

According to the Section 272B: “If a person, who is required to quote his permanent account number or Aadhaar number, as the case may be, in documents referred to in sub-section (6A) of section 139A or authenticate such number in accordance with the provisions of the said sub-section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.”

However, using the PAN card as ID proof for non-tax related purposes like opening a bank account or applying for a driving license shall not be charged with. But, there can be complications if the bank account is opened using an inoperative PAN, as transactions come under the purview of income tax.
In 2018, the Supreme Court of India declared Aadhaar as constitutionally valid and held that the biometric ID would remain mandatory for the filing of income tax returns and allotment of PAN cards.

Section 139 AA (2) of the Income Tax Act says that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities.

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