PAN-Aadhaar Linking Penalty: From July 1, Friday, that is today, the penalty for pairing PAN Aadhaar has been doubled. Until June 30, the PAN-Aadhaar linkage fine was Rs 500, but from July 1, it has been increased to Rs 1000, following the instructions of the Central Board of Direct Taxes, or CBDT. The top tax authority has extended the deadline to link PAN-Aadhaar to March 31, 2023, but such people who are yet to link will have to pay the double fine of Rs 1,000 from today.
How to Pay PAN Aadhaar Link Fee on Income Tax Portal?
Now if anyone wants to pair their PAN Aadhaar as mentioned above, they have to pay the fine of Rs 1,000. This can be done on the NSDL portal by paying the amount under Challan Nr. ITNS 280. “The late fees can be paid under Challan Nr. ITNS 280 with Major head 0021 (Income Tax Other than Companies) and Minor head 500 (Other Receipts ) through e-payment service available on the Income Tax Department’s Tax Information Network website,” said Sharath Chandrasekhar, partner at DSK Legal.
Here is a step by step process to pay PAN Aadhaar late fees
Step 1: Visit the link https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp to proceed with your Aadhaar PAN link request
Step 2: Among the available options, proceed under Challan No. ITNS 280 to submit PAN-Aadhaar link request
Step 3: Select the applicable tax there
Step 4: Payment is to be made under Major head 0021 (Income Tax Other than Companies) and Minor head 500 (Other revenue) in a single challan
Step 5: You can pay via internet banking or credit card. Select your preferred mode and enter details
Step 6: Enter your PAN, address and tax year
Step 7: Enter the Captcha and make the payment
It should be noted that the payments made on the NSDL portal take some time to appear on the income tax e-filing portal. Therefore, people who want to link PAN-Aadhar should try to make their request a few days after paying the fine, according to experts.
What happens if PAN-Aadhaar is not paired?
Although the CBDT has extended the deadline for pairing PAN-Aadhaar, the work is mandatory. “If a person (qualified to receive the Aadhaar number) fails to link his/her Aadhaar to PAN by March 31, 2023, such person’s PAN may become ineffective and suffer all the consequences of the law on Income Tax, 1961 for failure to provide, declare, or quote the PAN applies to these individuals. Accordingly, after March 31, 2023, such persons will not be able to, among other things, conduct financial transactions requiring disclosure of PAN, file income tax returns, open a bank account and/or invest in mutual funds. Furthermore, the Income Tax Office will not process the outstanding returns and will not complete the procedure related to defective returns filed by such persons,” Chandrasekhar said.
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