Amendment to the Provisions of Income-tax Rules, 1962 for prescribing fees under section 234H of the Income-tax Act, 1961

Amendment to the Provisions of Income-tax Rules, 1962 for prescribing fees under section 234H of the Income-tax Act, 1961 Every individual who has been assigned a PAN as of July 1, 2017, and is entitled to get an Aadhaar number is required to notify the specified authorities on or before March 31, 2022, under the terms of the Income-tax Act, 1961 ("the Act"). If he fails to do so, his PAN will become inactive, and all procedures requiring PAN would be suspended. Following transmission of Aadhaar to the prescribed authority and payment of a stipulated fee, the PAN can be rendered operational again. To alleviate the inconvenience to taxpayers, under Notification No.17/2022 issued March 29, 2022, taxpayers have till March 31, 2023 to notify the prescribed authority for Aadhaar-PAN linkage without risking consequences. As a result, taxpayers will be charged a price of Rs. 500 for the first three months after April 1, 2022, and a fee of Rs. 1000 after that, when informing their Aadhaar. However, until March 31, 2023, assessees who have not informed their Aadhaar will be able to use their PAN for Act-related operations such as filing returns of income, processing refunds, and so on. In this regard, a comprehensive Circular No.7/2022 dated 30.03.2022 was also released. After March 31, 2023, taxpayers who fail to provide their Aadhaar number as required will have their PAN deactivated, and they will be subject to all of the Act's penalties for not providing, informing, or citing their PAN.