Every person who has been allotted a PAN as of 1st July 2017 and is eligible to obtain an Aadhaar number shall link his PAN with Aadhaar. If such a person fails to do so, the PAN allotted to the person shall be made inoperative after the notified due date. The due date for such linking has been extended multiple times, and the latest date was 31-03-2022. If a person fails to intimate his Aadhaar after this date, he shall be liable for payment of fee under Section 234H.
The CBDT has notified the Income-tax (Third Amendment) Rules, 2022 to insert sub-rule (5A) in Rule 114 to provide that if a person intimates his Aadhaar number after the due date, then he shall be liable to pay a fee of:
(a) Rs. 500, if such intimation is made between 01-04-2022 and 30-06-2022; and
(b) Rs. 1,000, in all other cases.
Further, Sub-rule (2) of Rule 114AAA provides that where a person is required to furnish, intimate or quote his PAN, and his PAN has become inoperative, it shall be deemed that he has not furnished, intimated or quoted the PAN. Consequently, he shall be liable for all the consequences for not furnishing, intimating or quoting the PAN. The CBDT has notified that all the consequences for not furnishing, intimating or quoting PAN shall come into effect from 01-04-2023 if PAN becomes inoperative due to non-linking of PAN with Aadhaar. However, the taxpayer is liable to pay a fee of Rs. 500 or Rs. 1,000, as the case may be, if PAN is linked with Aadhar between 01-04-2022 to 31-03-2023.
