Section 234H of the Income Tax Act, 1961 imposes a fee for failure to intimate/link one’s Aadhaar number with PAN as required under Section 139AA. Here are the key provisions:
- When Does the Fee Apply?
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- If taxpayer fails to intimate/link Aadhaar with PAN by the due date
- Applies when Aadhaar is mandatory for filing ITR (as per Section 139AA)
- Fee Structure
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- ₹1,000as a one-time fee for default
- Payable at time of subsequent intimation/linking
- Key Conditions
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- Fee applies only if PAN becomes inoperative due to non-linking
- Must be paid before PAN can be made operative again
- In addition to other consequences of inoperative PAN (like TDS at higher rate)
- Due Dates
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- Original deadline was 31 March 2023 (extended multiple times)
- Currently no active deadline – fee applies when linking is eventually done
- Payment Process
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- Payable through e-filing portal when linking Aadhaar-PAN
- Can be paid via net banking/credit card/debit card
- Exceptions
No fee required for:
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- Non-residents as per IT Act
- Residents of Assam, Jammu & Kashmir, Meghalaya
- Individuals aged 80+ years
- Non-citizens of India
- Consequences Beyond Fee
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- PAN becomes inoperative
- Higher TDS/TCS rates may apply
- Difficulty in financial transactions
- Possible delay in ITR processing
Recommendation: Link Aadhaar-PAN immediately to avoid the fee and other complications, even if no active deadline exists currently. The linking can be done easily through the Income Tax e-filing portal.
