Under the provisions of the Income-tax Act, 1961 (“the Act”), every person who has been allotted a PAN as on 1st July, 2017 and is eligible to obtain Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March, 2022. On failure to do so, his PAN shall become inoperative and all procedures in which PAN is required shall be halted. The PAN can be made operative again upon intimation of Aadhaar to the prescribed authority after payment of a prescribed fee.
In order to mitigate the inconvenience to the taxpayers, as per Notification No.17/2022 dated 29th March, 2022, a window of opportunity has been provided to the taxpayers upto 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.1000 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. A detailed Circular No.7/2022 dated 30.03.2022 has also been issued in this regard.
After 31st March, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act for not furnishing, intimating or quoting the PAN shall apply to such taxpayers.
It may be noted here that vide Notification No.17/2022 dated 29th March, 2022 CBDT had notified Late fees for Delayed/Non linking of PAN with Aadhaar which ranges from Rs. 500 to Rs. 1000. The notification is given as under:
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi, the 29th March, 2022
Notification No. 17/2022-Income Tax
G.S.R. 229(E).—In exercise of the powers conferred by sections 139AA and 234H read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: ‒
1. Short title and commencement: – (1) These rules may be called the Income-tax (Third Amendment) Rules, 2022.
(2) They shall come into force from the 1st day of April, 2022.
2. In the Income-tax Rules, 1962 (herein after referred to as principal rules), in rule 114, after sub-rule 5, the following sub-rule shall be inserted, namely: —
“(5A) Every person who, in accordance with the provisions of sub-section (2) of section 139AA, is required to intimate his Aadhaar number to the prescribed authority in the prescribed form and manner, fails to do so by the date referred to in the said sub-section, shall, at the time of subsequent intimation of his Aadhaar number to the prescribed authority, be liable to pay, by way of fee, an amount equal to, —
(a) five hundred rupees, in a case where such intimation is made within three months from the date referred to in sub-section (2) of section 139AA; and (b) one thousand rupees, in all other cases.”. 3. In the Principal rules, in rule 114AAA, — (a) in sub-rule(1), for the figures “2020”, the figures “2022” shall be substituted;
(b) after sub-rule (2), the following proviso shall be inserted, namely:-
“Provided that the provisions of this sub-rule shall have effect from the date specified by the Board.”;
(c) in sub-rule (3), for the figures “2020”, the figures, words and letter „2022, after payment of fee in accordance with sub-rule (5A) of rule 114,‟ shall be substituted.
[Notification No. 17/2022/F. No. 370142/14/2022-TPL]
SHEFALI SINGH, Under Secy. Tax Policy and Legislation
Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Subsection (ii) vide number S.O. 969 (E), dated the 26th March, 1962 and last amended by the Income-tax (2nd Amendment) Rules, 2022, vide notification number G.S.R. 24(E) dated 18th January, 2022.
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