Brace to pay double penalty, if PAN-Aadhar linking done after June 30. Details here

New Delhi: Taxpayers have time till June 30 to link their PAN and Aadhaar with a late fee of Rs 500, according to a circular issued by the Central Board of Direct Taxes (CBDT). However, if this PAN-Aadhaar linking is done on or after July 1, the penalty amount will be Rs 1,000.

With a penalty fee, the Centre extended the deadline to link PAN card with Aadhar number till March 31, 2023. The earlier deadline was March 31, 2022.

As per the circular issued in late March this year, "In order to mitigate the inconvenience to the taxpayers..., a window of opportunity has been provided to the taxpayers up to 31st of March 2023 to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. As a result, taxpayers will be required to pay a fee of Rs 500 up to three months from 1st April 2022 and a fee of Rs 1,000 after that, while intimating their Aadhaar. However, till 31st March 2023 the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds etc."

The statement also said that after March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Income-tax Act, 1961 for not furnishing, intimating or quoting the PAN shall apply to such taxpayers.

According to a recent tweet on the Income Tax Department’s official Twitter account, here’s how to pay the penalty amount.

"Fee of Rs 500 payable if linked up to 30/06/22, else fee payable is Rs.1000. Fees to be paid by Challan No ITNS 280 with Major head 0021 (Income Tax Other than Companies) & Minor head 500 (Fee). Try to link after 4-5 working days from date of payment."