The Income Tax Department might impose a penalty of Rs 10,000 on a person who uses an inoperative PAN card.
If a person fails to link his/her PAN card with their Aadhaar card by March 31, 2020, the PAN card will become inoperative.
As per Section 272 B of the Income Tax Act, a person using a cancelled PAN card could be fined up to Rs 10000.
The IT department, in the past, had given multiple deadlines for linking PAN with Aadhaar and on every occasion, the deadlines were extended.
“However, March 31, 2020, deadline will not be extended,” an official release had said.
As per reports around 17.57 crore PAN card holders are yet to link their PAN accounts with Aadhaar.
Reportedly, by January 27, 2020, more than 30.75 crore PAN cards were linked with Aadhaar.
According to the Income Tax Department, 18 financial transactions have been specified where quoting of PAN is mandatory by the individual.
For linking Aadhaar with PAN card, one may visit the e-filing website of the IT Department and may use log-in credentials or even without logging.
After the amendment in the Finance Bill, 2019, the Income Tax department has the authority to make all the PAN cards, which have not been linked to Aadhaar, inoperative.
The amendment to the Finance Bill, 2019 came into effect from September 1, 2019.