If you didn't link your PAN with Aadhaar by June 30, 2023, your PAN will become inoperative w.e.f July 1, 2023. This means that you will not be able to use your PAN for any financial transactions where it is mandatory, such as opening a bank account, investing in mutual funds, or filing your income tax return.
In particular, you will not be able to file your income tax return (ITR) before July 31, 2023. This is because the Income Tax Department will not accept ITRs filed by taxpayers whose PANs are inoperative. If you pay the penalty now to reactivate your PAN, it may take some time for the PAN to become active again. In that case, you may miss the deadline to file your ITR. If you file your ITR after the deadline, you will be liable to pay a late filing fee of Rs. 5,000 (if your total income exceeds Rs. 5 lakh).
So, if your PAN is inoperative at present, you will end up paying Rs. 6,000, i.e. Rs. 1,000 for linking PAN-Aadhaar and Rs. 5,000 for filing belated ITR.
Note: If your total income does not exceed Rs. 5 lakh, then you will be liable to pay a late filing fee of Rs. 1,000 for filing a belated ITR. In addition, you will also have to pay a penalty of Rs. 1,000 for linking your PAN with Aadhaar after July 1, 2023. In total, you will end up paying Rs. 2,000: Rs. 1,000 for linking PAN-Aadhaar and Rs. 1,000 for filing belated ITR.
This is a much better option than not linking your PAN with Aadhaar and paying a penalty of Rs. 6,000.
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