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CBDT has notified the Income-tax (Third Amendment) Rules, 2022. The CBDT has inserted sub-rule (5A) in Rule 114 . Sub rule (5A)  provide that if a person intimates his Aadhaar number after the due date, he shall be liable to pay a fee of Rs. 500, if made between 01-04-2022 and 30-06-2022; and Rs. 1,000, in all other cases.

And if the PAN is not linked with Aadhaar by March 31, 2023, then next year starting April 1, 2023, your PAN will become inoperative. Once your PAN becomes inoperative, your will not be able to file income tax return, open bank account, invest in mutual funds etc.

New sub-rule (5A) in Rule 114 provide that if a person Links his Aadhaar number with PAN Card after the due date, then he shall be liable to pay a fee of:

(a) Rs. 500, if made between 01-04-2022 and 30-06-2022; and

(b) Rs. 1,000, in all other cases.

Such fees shall be payable by the person at the time when the Aadhaar number is intimated.

Furthermore, sub-rule (2) of Rule 114AAA says 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.

How to link Aadhaar & PAN?

Recently Income tax department has enabled the PAN-Aadhaar linking in the income tax portal. But to link the PAN & Aadhaar, first you have to pay the prescribed fee. The quantum of fee is given in my earlier article.

There are two major steps:

Step:1 Payment of applicable fee on NSDL (now Protean) portal under Major head (0021) and Minor head (500) for AY 2023-24.

Minor head (500) is recently added to facilitate payment of fee for linking PAN -Aadhaar.

Payment of Rs. 500 orRs1000 should be in a single challan and assessment year should be 2023-2024.

All about PAN-AADHAR linking Post 31st March 2022

Step:2 Submit the Aadhaar link request on e-Filing portal after 4-5 working days of making of payment on NSDL (now Protean) portal.

Proceed to Income tax portal after 4-5 working days. Login to your income tax filing profile. In the profile page you can find the pan-Aadhaar link option. After clicking the option you have to insert the PAN number and the Aadhaar number.

After the number insertion, portal will ask for verify the payment. Upon verifying the payment you have to mention the name as per Aadhaar. Upon name insertion, you will be prompted to OTP verification. For successful linking your phone number should be registered with Aadhaar. On successful OTP generation, linking process will be completed.

Note: Some private bank payment gateway is not amended for the above payment. So there will be error message on payment. We have to check the payment enabled banks to complete payment.

Author Bio

I am a qualified chartered accountant. Founder and managing partner of NRSR&Co, Manipal. Expertise in Direct Tax, Indirect Tax, Project financing, Trust, Society, Banking & Co-operative society. Did my internship/articleship under Ramesh Rao & Associates. Also worked as associate with S View Full Profile

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May 2024