It is not possible to complete any financial work in today’s time without PAN card and Aadhaar. Keeping this in mind, the government had decided to link PAN and Aadhaar. However, many people have still not linked their PAN with Aadhaar.
The PAN card of such people has become inactive. Despite this, those who are using inactive PAN in financial transactions can now face strict action under section 272B of the Income Tax Act. Under this section, a fine of up to ₹ 10,000 can be imposed on each such transaction. The government has started taking steps in this direction.
PAN-Aadhaar not linked?
The Income Tax Department says that if a person uses an inactive PAN, especially in high value transactions, then he can be fined separately in each case. This includes transactions such as opening or operating a bank account, investing in shares or mutual funds, purchasing property, applying for a loan and filing income tax returns.
How does PAN get deactivated?
If you have not linked your PAN to Aadhaar, it is declared inactive. Such PANs are now invalid for most tax and financial purposes. In such a situation, if a person uses this inactive PAN for financial purposes, it will be considered a violation of the law.
Keeping two PANs is also wrong
If a person has two PANs, it is wrong. The taxpayer should surrender one PAN. If he is caught making a mistake, a penalty will be decided after giving him an opportunity to explain the reason behind the act. If the reason is genuine and the mistake is made by mistake, no penalty will be imposed. So, if a taxpayer has two PANs, he should apply online for surrender of additional PAN by filling and submitting ‘Change or Correction in Existing PAN Data/Reprint of PAN Card’.
