Failure on linking pan with aadhaar card application
CENTRAL BOARD OF DIRECT TAX NOTIFIES COMPULSORY LINKING OF AADHAAR CARD WITH PAN NUMBER BY 31ST JANUARY 2020
The Central Board of Direct Tax has issued a notification on 13th February 2020, which specify that if PAN number is not linked with Addhar Card Number by 31st day of March 2020 then PAN number of that person will be INOPERATIVE.
Consequences in case of PAN becoming inoperative:
- It mandatory for a person to quota PAN number to conduct various business transaction and to comply with various Law. If the PAN number is not quoted then there is general penalty clause under section 272B of Income Tax Act for non-quoting of PAN amounting to Rs 10,000.
Other Major Administrative Inconvenience to any individual:
- PAN is compulsory to be quoted in various transactions mentioned below, if PAN become inoperative there will be question on eligibility to conduct various transaction: –
- Buying or Selling an Immovable Property exceeding Rs 10
- Buying Mutual funds, debentures or bonds for value exceeding Rs 50,000, and such other cases, wherein PAN has been Mandatory to quote.
Where is PAN mandatory to Quote ?
Not Just filing of income tax returns (ITR) , PAN Card is also Mandatory for carrying out several transactions.
1) For buying or selling :
- A Motor Vehicle
- Securities other than shares for amount exceeding ₹1 lakh per transaction
- Shares of a company not listed in a recognised stock exchange for amount exceeding ₹1 lakh per transaction
- Any immovable property for an amount exceeding ₹10 lakh or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ₹10 lakh
- Goods or Services of any nature other than those specified above for an amount exceeding Rs. 2 lakh per transaction.
2) In Bank for :
- Opening an Account
- Applying for Debit or Credit card
- Opening a DEMAT Account
- Depositing cash above ₹50,000 in a day in a Bank
- Payment of over ₹50,000 in cash during any one day for purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank
- On Fixed Deposits exceeding ₹50000 in one go or aggregating to more than ₹ 5,00,000 during a financial year.
3) Payment for:
- An amount exceeding ₹50000 in cash to a hotel or restaurant against bills at any one time,
- An amount exceeding ₹50000 in cash for travel to any Foreign Country or on purchase of any Foreign Currency at any one time,
- Buying Mutual Funds, debentures, bonds, etc. Amounting greater than ₹50000,
- An amount exceeding ₹50000 to pre paid payment instruments in a financial year,
- An amount exceeding ₹50000 to Life Insurance premium in a financial year.
What to do in order to make PAN operative Again if it becomes invalid after 31st March, 2020 ?
When the Person whose PAN has become invalid, the he shall link his AADHAAR Card with PAN and his PAN shall become operative from the date of such intimation of AADHAAR Number.
Want to LINK your addhar Card ?
Click on the following link https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/LinkAadhaarHome.html?lang=eng which is an income tax online facility to link Addhar with PAN Card. Fill the required details asked in the link and click on “Link Addhar” tab.