FM Nirmala Sitharaman in favour of penalty for not linking PAN with Aadhaar

The Union Finance Minister Nirmala Sitharaman in a press conference said, the provision of penalty for avoiding to link Parmanent Account Number (PAN) with Aadhaar is necessary. Such a provision helps in avoiding problems related to tax deducted at source (TDS) and tax collected at source (TCS). A late fee of Rs 500 was initially imposed for not linking Aadhaar with PAN since April 1 last year, and it was later raised to Rs 1,000 from July 1 last.

According to a statement issued by the Ministry of Finance on March 28, if the PAN card is not linked to Aadhaar by 30 June 2023, it will become inoperative from July 1, 2023. Hence, every person should link their Aadhaar with PAN card under any circumstances to avoid any inconvenience.