Government Gains ₹600 Cr in Penalties as PAN-Aadhaar Linking Delays,with 11.48 Cr PANs still awaiting connection.

 

Government's Windfall: ₹600 Cr Penalty Collected for PAN-Aadhaar Linking Delays!

As of January 29, MoS (Finance) Pankaj Chaudhary informed the Lok Sabha that 11.48 crore PANs remain unlinked with Aadhaar. The Parliament was apprised on February 5 that the Government has garnered a penalty exceeding ₹600 crore for delays in connecting PAN with Aadhaar, with approximately the same number of Permanent Account Numbers yet to be linked with biometric identity.

Minister of State for Finance Pankaj Chaudhary stated in a written response in the Lok Sabha that as of January 29, 2024, the count of PANs not linked with Aadhaar, excluding exempted categories, stands at 11.48 crore.

In response to an inquiry about the government's revenue from the late penalty of ₹1,000 imposed on individuals failing to link their PAN and Aadhaar after the deadline of June 30, 2023, Mr. Chaudhary conveyed that the total fee collected from those who have not linked their PAN with Aadhaar amounts to ₹601.97 crore for the period from July 1, 2023, to January 31, 2024.

The Income Tax department announced that starting from July 1, 2023, the PANs of taxpayers who have not informed their Aadhaar details would be rendered inoperative, with no refunds issued for such PANs. Additionally, higher rates of TDS and TCS would be applied. To reactivate the PAN, a late fee of ₹1,000 can be paid.