Finance Minister Nirmala Sitharaman defends imposing fine for not linking PAN with Aadhaar

The PAN will become inoperative if not linked with Aadhaar before June 30 this year.

Updated - April 06, 2023 03:34 pm IST

Published - April 06, 2023 03:08 pm IST - New Delhi

Union Finance Minister Nirmala Sitharaman.

Union Finance Minister Nirmala Sitharaman. | Photo Credit: ANI

Union Finance Minister Nirmala Sitharaman on Thursday defended the penalty for not linking Permanent Account Number (PAN) with Aadhaar. Aadhaar-PAN linking was free till March 31, 2022. A late fee of ₹500 was being imposed since April 1 last year which was later raised to ₹1,000 from July 1 last.

Moreover, the PAN will become inoperative if not linked with Aadhaar before June 30 this year. During a press conference on Thursday, the Union Finance Minister said, "The time was given beforehand, Aadhaar-PAN should have been linked whenever possible... The link should be done now".

"If this deadline is over, the amount of fine will increase," she added. According to a statement from the Finance Ministry issued on March 28, any individual with a PAN must link it with Aadhaar or suffer consequences, including increased tax deducted at source (TDS) and tax collection at source (TCS) deduction.

Also Read | Initials hurdle hits PAN-Aadhaar link

The statement stated, "Under the provisions of the Income-tax Act, 1961 (the 'Act') every person who has been allotted a PAN as of 1st July, 2017 and is eligible to obtain an Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March, 2023, on payment of a prescribed fee. Failure to do so shall attract certain repercussions under the Act w.e.f. 1st April, 2023.

The date for intimating Aadhaar to the prescribed authority for the purpose of linking PAN and Aadhaar has now been extended to June 30, 2023. "The PAN of taxpayers who have failed to link their Aadhaar as required will become inoperative on July 1, 2023.

Also Read | Non-linking of PAN with Aadhaar by March 31 to attract a penalty of ₹500-1,000

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.