ITR: Missed PAN-Aadhaar linking deadline?; Inoperative PAN can cost you Rs.6,000

The deadline for linking Permanent Account Number (PAN) with Aadhaar card, June 30, is now long past. Those who failed to link their PAN with their Aadhaar now have inactive PANs. A payment of Rs 1,000 would be required to reactivate their PAN card so that taxpayers can quote it. However, the actual penalty for certain taxpayers with inactive PANs might be as much as Rs 6,000.

One consequence of an inactive PAN is that you may be unable to file your income tax return (ITR) before the July 31, 2023 deadline.

If your PAN is now inactive, you may be required to pay a penalty and wait up to 30 days for it to reactivate. This approach, however, has the potential to cause you to miss the ITR filing deadline, which is less than a month away. It is crucial to know that filing a late ITR results in a late filing cost that varies based on your overall income.

The late filing fee for a belated ITR is Rs 5,000 for individuals with a total income of more than Rs 5 lakh. There is also a Rs 1,000 fee for linking PAN and Aadhaar. Individuals in this income group might face a total penalty of Rs 6,000 (Rs 5,000 for late ITR filing and Rs 1,000 for PAN-Aadhaar linking).

It is vital to remember that if your total income does not exceed Rs 5 lakh, the late filing charge for belated ITR would be Rs 1,000, totaling Rs 2,000 (including the PAN-Aadhaar linking fee).

To avoid such penalties and fees, taxpayers should link their Aadhaar with their PAN as soon as possible and file their income tax returns before the July 31, 2023 deadline. Individuals may assure compliance with tax rules and avoid extra financial difficulties by doing so, according to the report.

In the event that the deadline is missed, late returns can be submitted until December 31, 2023. Failure to provide an operational PAN for specified transactions may result in difficulties.

Filing a late ITR may result in penalties such as unpaid tax liabilities and the loss of certain deductions and advantages available to timely filers. It may also raise the possibility of audits and related fines in the event of inconsistencies.

If you paid the penalty for PAN-Aadhaar linking on or before June 30, 2023, the income tax authorities will take your case into consideration. By linking your PAN to Aadhaar and filing your ITR on time, you may avoid the late filing charge connected with late ITR.

If you submitted your ITR on or before June 30, 2023, but have not yet linked your PAN with Aadhaar, the ITR may not be processed until the linkage is accomplished. A valid PAN card is required to file an income tax return and get any pending tax refunds.