Your Permanent Account Number (PAN) card will stop functioning if it is not linked with your Aadhaar card, starting April 1, 2022. In light of this, the Income Tax Department has recently extended the deadline of linking PAN with Aadhaar to March 31. It should be noted that according to Section 139AA AA of the Income Tax act, every individual with PAN as of July 1, 2017, and is eligible to obtain Aadhaar, must link PAN with Aadhaar.
Those PAN cards that are still not linked to Aadhaar by the specified date would be declared inoperative. A penalty of Rs 10,000 can also be levied upon the defaulter each time the individual fails to furnish PAN card details. This is in accordance with Section 272B of the I-T Act, which says that a fine of Rs 10,000 can be levied upon defaulter if found PAN is not furnished or quoted according to the I-T law.
Earlier, the Central Board of Direct Taxes (CBDT) had said in a statement, “When a person, whose PAN has become inoperative is needed to submit, intimate or quote his PAN under the Act, it shall be deemed that he has not furnished, intimated or quoted the PAN, as the case may be, in accordance with provisions of the Act, and he shall be liable for the consequences under the ACT for not furnishing, intimating or quoting the PAN.”
Meanwhile, a person can only have one PAN. Obtaining or possessing more than one PAN is against the law and may attract a penalty of up to Rs 10,000. Therefore, it is advisable not to obtain or possess more than one PAN. In case you have a second PAN card, you must send it to to the I-T department as soon as possible. Section 272B of the Income Tax Act of 1961 also contains a provision for this.
