Not only will their PAN cards become inoperative but individuals could also face a fine up to Rs 10,000 for using an inoperative PAN card, the tax department has said in a fresh notification.
Adouble whammy awaits individuals who fail to link their PAN cards with Aadhaar by the end of March 31, 2020, the final deadline set by the Income Tax Department.
Not only will their PAN cards become inoperative but they could also face a fine up to Rs 10,000 for using an inoperative PAN card, the tax department has said in a fresh notification.
It is worth mentioning that under Section 272B of the Income Tax Act, a person found using an invalid/inoperative PAN card may be fined Rs 10,000.
“If a person fails to comply with the provisions of section 139A, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees,” according to Section – 272B, Income Tax Act, 1961.
There are several other complications that people could face for not linking their PAN card with Aadhaar as it will become inoperative from April 1.
While people who fail to link PAN card with Aadhaar can use it as ID proof for non-tax purposes like opening a bank account or for a driving licence without penalty, any financial transactions quoting inoperative PAN (Amount above Rs 50,000) could attract a penalty.
If an individual misses the deadline for linking, his/her PAN card will become inoperative from April 1. However, it will again become operative once the individual links it with the Aadhaar card.