Linking Aadhaar On June 30 And On July 1, 2022? Pay This Much Penalty

The Central Board of Direct Taxes (CBDT) has declared the penalties that you may have to pay if you do not link your PAN card with Aadhaar card. The deadline to link PAN with Aadhaar was extended to March 31, 2023 where you had to shell out some penalty as well. CBDT had announced it on March 29, 2022. According to CBDT, if you did not link PAN with Aadhaar by March 31, you will have to pay a penalty of approximately Rs 1000.

In this scenario, the PAN would remain functional for another one year till March 2023 for performing activities like filing Income Tax Return (ITR), claiming your refunds, and several other I-T procedures.

Pay this penalty if you link PAN to your Aadhaar on or before June 30

You will attract a penalty if you link your PAN card with Aadhaar card on or before June 30. The charges of penalty has been fixed at Rs 500, according to a circular notice issued by CBDT.

Pay this penalty if you link PAN with Aadhar on or After July 1

According to CBDT's circular notice, if you link your PAN with Aadhaar on or after July 1, 2022, you will have to pay a late charge of Rs 1000.

This is how you need to make the penalty payment

You will be required to pay a penalty in the above scenarios. You will need to pay the penalty by Challan No ITNS 280 with Major head 0021 (Income Tax Other Than Companies) and Minor head 500, as per the Tweet of Income Tax Department.

If your PAN becomes non-functional, what will happen?

It is worth mentioning that taxpayers have been provided with a window of opportunity up to March 31, 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN card linking without going through any consequences. Taxpayers will need to pay a penalty of Rs 500 if they link PAN-Aadhaar on or before June 30, and Rs 1000 on or after July 2 while intimating their Aadhaar. But if taxpayers do not intimate their Aadhaar, as necessary, PAN will become inoperative.
After your PAN becomes inoperative, you will not be able to perform financial transactions, where PAN is mandatory.