Penalty u/s 234H for not linking PAN with Aadhaar reduced to Rs.500 from Rs.1000

The deadline for linking PAN to Aadhaar is March 31, 2022. If an individual does not connect his or her PAN with his or her Aadhaar number by this date, the penalty for failing to do so after April 1, 2022, will be two-tiered.

According to a notification issued by the Central Board of Direct Taxes (CBDT) on March 29, 2022, a fee of Rs 500 will be levied if the PAN-Aadhaar link is not completed within three months of the deadline. This means that if PAN-Aadhaar is linked between April 1, 2022, and June 30, 2022, the individual will be required to pay Rs 500 as a penalty. If the PAN-Aadhaar link is not completed within three months, a Rs.1,000 penalty would be imposed.

The Central Board of Direct Taxes (CBDT) vide Notification No. 17/2022 dated 29th March 2022 notifies Income Tax (Third Amendment) Rules 2022.

The Notification is Given Below:

G.S.R. 229(E).—In exercise of the powers conferred by sections 139AA and 234H read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: ‒

1. Short title and commencement: – (1) These rules may be called the Income-tax (Third Amendment) Rules, 2022.

(2) They shall come into force from the 1st day of April, 2022.

2. In the Income-tax Rules, 1962 (herein after referred to as principal rules), in rule 114, after sub-rule 5, the following sub-rule shall be inserted, namely: —

“(5A) Every person who, in accordance with the provisions of sub-section (2) of section 139AA, is required to intimate his Aadhaar number to the prescribed authority in the prescribed form and manner, fails to do so by the date referred to in the said sub-section, shall, at the time of subsequent intimation of his Aadhaar number to the prescribed authority, be liable to pay, by way of fee, an amount equal to, —

(a) five hundred rupees, in a case where such intimation is made within three months from the date referred to in sub-section (2) of section 139AA; and

(b) one thousand rupees, in all other cases.”.

3. In the Principal rules, in rule 114AAA, —

(a) in sub-rule(1), for the figures “2020”, the figures “2022” shall be substituted;

(b) after sub-rule (2), the following proviso shall be inserted, namely:-

“Provided that the provisions of this sub-rule shall have effect from the date specified by the Board.”;

(c) in sub-rule (3), for the figures “2020”, the figures, words and letter „2022, after payment of fee in accordance with sub-rule (5A) of rule 114,‟ shall be substituted.

For Official Notification Download PDF Given Below: