For the convenience of taxpayers, the Income Tax Department has given permission to use the 12-digit Aadhaar number instead of the PAN number, but while doing so you need to take a lot of precaution because if you gave the wrong Aadhaar number then you will get Rs 10,000. Heavy fines may have to be paid.
The latest amendment to the Income Tax Act 1961 introduced in the Finance Bill 2019 not only allows the use of Aadhaar number in place of PAN, but also provides for a penalty of Rs 10,000 for giving an incorrect Aadhaar number.
This new rule of penalty applies only where you are using the Aadhaar number in place of PAN and where it is mandatory to provide PAN number as per the rules of Income Tax Department. For example, filing income tax returns, opening a bank account, opening a demat account and buying mutual funds and bonds worth more than Rs 50,000.
New rules of Aadhaar
Although Aadhaar is issued by the Unique Identity Authority of India (UIDAI), the penalty is levied by the Income Tax Department, not by UIDAI.
According to Section 272B of the Income Tax Act, 1961, the Income Tax Department can impose a penalty if the income tax payer fails to comply with the provisions of PAN. The penalty amount will be Rs 10,000 for each default.
Earlier, the penalty was limited to PAN only, but in September when the provision of PAN-Aadhaar interchangeability came, it became applicable for Aadhaar as well.
If you commit this mistake in Aadhaar, you may have to pay a fine of Rs 10,000
The Income Tax Department has approved using the Aadhaar number instead of the PAN number. But taxpayers need to be very careful while doing so. If there is a mistake, there is a provision of a fine of Rs 10,000.
Need to take care while using Aadhaar number instead of PAN number
If the Aadhaar number is entered incorrectly, then a fine of Rs 10,000 may be imposed.
This provision in the latest amendment of the Income Tax Act 1961 introduced in the Finance Bill 2019.
This new rule of fine applies only in those places where you use the Aadhaar number instead of the PAN
For the convenience of taxpayers, the Income Tax Department has given permission to use the 12-digit Aadhaar number instead of the PAN number, but while doing so you need to take a lot of precaution because if you gave the wrong Aadhaar number then you will get Rs 10,000. Heavy fines may have to be paid.
The latest amendment to the Income Tax Act 1961 introduced in the Finance Bill 2019 not only allows the use of Aadhaar number in place of PAN, but also provides for a penalty of Rs 10,000 for giving an incorrect Aadhaar number.
This new rule of penalty applies only where you are using the Aadhaar number in place of PAN and where it is mandatory to provide PAN number as per the rules of Income Tax Department. For example, filing income tax returns, opening a bank account, opening a demat account and buying mutual funds and bonds worth more than Rs 50,000.
New rules of Aadhaar
Although Aadhaar is issued by the Unique Identity Authority of India (UIDAI), the penalty is levied by the Income Tax Department, not by UIDAI.
According to Section 272B of the Income Tax Act, 1961, the Income Tax Department can impose a penalty if the income tax payer fails to comply with the provisions of PAN. The penalty amount will be Rs 10,000 for each default.
Earlier, the penalty was limited to PAN only, but in September when the provision of PAN-Aadhaar interchangeability came, it became applicable for Aadhaar as well.
Under what circumstances will be fined-
1. If you give incorrect Aadhaar number instead of PAN.
2. If you fail to provide PAN or Aadhaar number in a particular transaction.
3. Just providing Aadhaar number is not enough, you will have to authenticate the biometric identity as well and if it fails you will be fined.
Under the rules, banks, financial institutions etc. can also be fined if PAN or Aadhaar number is not given correctly and they are not authenticated.
Apart from this, it is also to be kept in mind that if you give the wrong Aadhaar number in two forms, then you may have to pay a fine of 10-10 thousand rupees, ie Rs 20 thousand for each. Therefore, it is better to be cautious while filling the form.
