Union Finance Minister Nirmala Sitharaman has defended the penalty for not linking PAN (Permanent Account Number) with Aadhaar.
Earlier, the deadline for linking Aadhaar with PAN was March 31, 2022, and a late fee of Rs. 500 was imposed if it was not done by April 1, 2021. This late fee was increased to Rs. 1000 from July 1, 2021.
Now, if PAN is not linked with Aadhaar before June 30, 2023, it will become inoperative, and a higher amount of fine will be levied. The Finance Ministry has issued a statement that everyone who has a PAN and is eligible for an Aadhaar number must link the two before March 31, 2023, by paying a prescribed fee; otherwise, there will be consequences under the Income-tax Act, 1961.
In a press conference, the Finance Minister said that the deadline has been given beforehand, and linking Aadhaar with PAN should have been done whenever possible.
She emphasized that the linking should be done now, and if the deadline is missed, the amount of the fine will increase. The consequence of not linking PAN with Aadhaar would lead to increased TDS (Tax Deducted at Source) and TCS (Tax Collection at Source) deductions.