Rs. 2,125 crore collected as Penalty due to Non-linking of PAN and Aadhaar

The Minister of State Shri Pankaj Chaudhary in the Ministry of Finance in a written reply to a question raised in the Rajya Sabha said, “Rs. 2,125 crore collected as Penalty due to Non-linking of PAN and Aadhaar.”

The Questions that were raised by SMT. Phulo Devi Netam:

Will the Minister of FINANCE be pleased to state:

(a) the details of the number of people whose PAN cards have been linked with their Aadhaar number till June 30th, 2023, State-wise;

(b) the details of the numbers of PAN cards which have been deactivated due to non linking with Aadhaar after 30th June, 2023, State-wise;

(c) the details related to the consequences of deactivation of PAN card due to non-linking with Aadhaar card;

(d) the details related to the procedure for reactivation of PAN card after its deactivation; and

(e) the number of people who have paid Rs.1,000 for linking the two documents and the total amount collected so far?”

Replied by Minister of State in the Ministry of Finance Shri Pankaj Chaudhary:

(a) The details of number of PANs linked with their respective Aadhaar as on 30th June, 2023 is 54,67,74,649. State-wise breakup of data for a back date is not available. However, state-wise information as on 30.11.2023 is provided in Table given below.

(b) No PAN is deactivated for the reason of non-linking with Aadhaar. The PAN is made only ‘inoperative’ if it is not linked with Aadhaar.

(c) If the PAN is not linked with Aadhaar, the consequences of the PAN made inoperative are as per the Circular No. 03 of 2023, which are as follows:

(i) refund of any amount of tax or part thereof, due under the provisions of the Income-tax Act, 1961 shall not be made to him;

(ii) interest shall not be payable to him on such refund for the period, beginning with the date specified under sub-rule (4) of rule 114AAA of Income-tax Rules, 1962 and ending with the date on which it becomes operative;

(iii) where tax is deductible under Chapter XVII-B in case of such person, such tax shall be deducted at higher rate, in accordance with the provisions of section 206AA of Income-tax Act, 1961

(iv) where tax is collectible at source under Chapter XVII-BB in case of such person, such tax shall be collected at higher rate, in accordance with the provisions of section 206CC of Income-tax Act, 1961.

(d) In view of answer to (b), the question does not arise.

(e) Total number of people who have paid Rs. 1000 for linking Aadhaar with PAN during the period from 1st July, 2022 to 30th November, 2023 is 2.125 crore. Total amount collected from these people is Rs. 2,125 crore.