According to the CBDT, if you link your PAN with your Aadhaar on or before June 30, 2022, you will be charged Rs 500. PAN-Aadhaar linking on or after July 1 will attract a penalty of Rs 1,000. 2022.
As per CBDT circular dated March 30, 2022, “Further, Rule 114AAA of Income Tax Rules provides that if the PAN of a person has become inoperative, he shall not be able to furnish, inform or quote his PAN and shall be liable for all consequences under the Act for such failure.”
As per the circular, it will have several implications such as:-
(i) The person will not be able to file the return using the inoperative PAN
(ii) Pending returns will not be processed
(iii) Pending refunds cannot be issued to inoperative PAN
(iv) Pending proceedings in case of defective returns cannot be completed after PAN is deactivated
(v) Tax will have to be deducted at higher rate on deactivation of PAN.
How to pay penalty amount while linking PAN Aadhar?
Step 1: Visit the Protein (NSDL) portal at https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp to proceed to submit the Aadhaar-PAN linking request.
Step 2: Click on Proceed under Challan No./ITNS 280 to submit Aadhaar-PAN linking request
Step 3: Select applicable tax
Step 4: Please ensure that the fee payment is in Minor Head 500 (Fees) and Major Head 0021. has been done under [Income Tax (Other than Companies)] in a single invoice.
Step 5: Select the mode of payment by net banking or debit card
Step 6: Enter PAN, choose assessment year and enter address
Step 7: Enter the captcha code and click on proceed tab
Since the payment made in NSDL (now Proteus) takes few days to get reflected on the e-filing portal, taxpayers are advised to try to make PAN-Aadhaar linkage request after 4-5 days.