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Provisions of section 234H of the Income Tax Act are recently inserted vide the Finance Act, 2021. Accordingly, section 234H is made effective from 1st April 2021. It deals with the late fees payable on account of failure to intimate the Aadhaar number to the Income Tax Department (i.e., link the PAN with Aadhaar). The provisions of section 234H are briefly explained in the present article.

Mandatory requirement of linking the Aadhaar number-

Provisions of section 139AA of the Income Tax Act deals with the mandatory requirement of linking of the Aadhaar number. The provisions were introduced basically to robust the way of de-duplication of PAN database.

The linking provisions are summarized hereunder-

Particulars Manner of intimating/ linking the Aadhaar number
A person applying for allotment of PAN on or after 1st July 2017 Aadhaar number or enrolment ID is to be quoted in the PAN application form.
A person who already possess PAN as on 1st July 2017 Needs to intimate the Aadhaar number (i.e., needs to link the Aadhaar number with PAN). Such linking is possible through both via SMS or via website.

Late fees for non-linking of PAN with Aadhaar [Section 234H]-

Late fees for non-linking of PAN with Aadhaar is payable as per provisions of section 234H when the following two conditions are satisfied-

Condition 1 – The person is required to intimate (i.e., link) the Aadhaar number under section 139AA(2); and

Condition 2 – The person fails to intimate (i.e., link) the same within the specified due date.

It is important to note here that, post various extensions, currently, the due date for linking the PAN with Aadhaar is 30th September 2021.

Amount payable as a late fee under section 234H of the Income Tax Act

The defaulter will be liable to pay a late fee of a maximum amount of INR 1,000. The said late fees are payable at the time of making intimation as required under section 139AA(2).

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3 Comments

  1. Chander Bhutani says:

    i am a Canadian Citizen and an OCI. I never had aadhar card . My trading account is suspended as it is not linked to aadhar card. I had sent an email to my JRO giving all details about my Canadain Passport, OCI and pancard details but have not received any reply from them. Can you guide me how to deal with this.
    Thanks

  2. Venkatesh Babu says:

    Hi Sandeep, my friend missed to link Pan card number with Aadhar, she got the TDS deduction of INR ten thousand (Rs.10000) during salary payout.Is it refundable from IT? or is it possible to claim the amount now or during next IT filing ? I understand from your article the penalty amount is only INR 1000/-. please help us in clarify this penalty part in detail

    1. Akhlesh says:

      I will help you to get things done.

      If possible, TDS may also be refunded.

      Please call me at 8826017329 for all Tax related matters

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