PAN-Aadhaar linking is crucial by March 31, here’s why

In the meantime, the deadline to file income tax returns for the fiscal year 2020-21 was December 31, 2021.

New Delhi: By March 31, 2022, Indians should link their Permanent Account Number (PAN) to their Aadhaar card. If the PAN card is not linked to Aadhaar by the deadline, it may become invalid, and a cost of Rs 1,000 may be required to link the PAN card to Aadhaar.

If a PAN card is not connected to Aadhaar, an individual will be unable to invest in mutual funds, stocks, or create a bank account, among other things, as all of these activities need the presentation of a PAN card.

"Previously, there was no punishment provision in the Aadhaar-PAN linking guidelines. Failure to link the two IDs, according to the new rule, will render the PAN invalid, making it impossible to conduct financial operations that require PAN information. Filing a tax return and opening a bank account are two examples. Also, if the aforementioned individual fails to quote PAN as and when required, a penalty of Rs 10,000 will be imposed under section 272B of the Income Tax Act," according to Mint, citing Amit Gupta, the Managing Director of SAG Infotech, a SEBI-registered income tax solution provider business.