Individuals who have not linked their PAN Cards to Aadhar are in for double trouble if they fail to do so before 31 March 2020.
As per a notification from the Tax Department, not only will the unlinked PAN cards become inoperative, but even a fine of Rs 10,000 will be levied as failure to comply. The fine will be charged towards using an inoperative PAN card, said the tax department notification.
This clause is mentioned under Sec 272B of the Income Tax Act, which says that a person using an invalid or inoperative PAN Card will have to cough up a fine of Rs 10,000. As per the clause, if a person fails to comply with the provisions of Section 139A, the assessing officer may direct the individual to pay Rs 10,000 as a penalty.
Their are several other complications that a person may face, for not linking their PAN Card to Aadhar before 31 March, as their PAN cards will become inoperative automatically from 1 April 2020. For eg. though the PAN card can be used for identification and non tax purposes, however any financial transaction (above Rs 50,000) which needs their PAN card will invite a penalty. So will a tax filing.