People make every effort to hide their income to avoid tax. However, now the government is going to make such arrangements from April 1, that even if you want, you will not be able to hide your income.Â
Due to the change in income tax rules, you will have to get your PAN card linked with Aadhaar by March 31 in any case. Failure to do so may result in you paying a fine.
According to the notification of the Central Board of Direct Taxes (CBDT), if you do not get the PAN-Aadhaar linked by March 31, then you will have to pay a fine of Rs 500. By paying this fine, you will be able to get both your things linked from 1st April to 30th June. At the same time, after June, this amount of fine will increase to Rs 1000.
Why is the government implementing this rule?
According to sources, many taxpayers hide their annual income information. Due to which the Income Tax Department has to bear a huge loss. That is why the department has started this system to prevent tax evasion.
After the implementation of this system, even if a taxpayer wants, he will not be able to evade tax. Actually, due to the link of Aadhaar and PAN, the department will have a direct eye on all your money transactions.
This will also help the department in increasing the direct tax collection. According to departmental sources, after demonetisation on November 8, 2016, there has been an increase in the number of taxpayers across the country, but the total tax collection has not increased as expected.
Why was the rule of penalty in income tax introduced? Â
This rule of imposing fine after the stipulated time limit was introduced as an amendment in ‘The Taxation Laws (Amendment) Act 2021’. It was to be levied as section 234H in the Income Tax Act, 1961. Earlier, there was no provision related to penalty for not linking two different documents by the due date.
There may be trouble if you do not link Aadhaar-PAN
If the Aadhar-Pan Link is not linked to the prescribed time limit, then according to the new rules, there will be a fine, as well as your PAN can also be deactivated.
Let us tell you that if someone does not have Aadhar-PAN link, then financial transactions can also face huge difficulties. For example, problems can arise in many transactions like mutual funds, stock market and fixed deposits.
Benefits of Linking Aadhar Card and Pan Card
Due to this unique feature of Aadhar card, it has become easy to collect any person’s identity from his bank details, phone number and necessary information. In such a situation, linking Aadhaar and PAN can be very beneficial for the Income Tax Department as well.
