Income Tax: Salary could be Stopped From Next Month if you Fail to Do this by June

  • June 23, 2021
  • CA Chandan Agarwal's Office

If an employee fails to link PAN with Aadhaar card by June 30, the company will not credit their salary from the next month, according to the report

There has been reports that Income Tax department may take tough stand if individuals fail to link their PAN with Aadhaar cards within the end of this month. The last date to link Permanent Account Number (PAN) with Aadhaar has been extended to June 30.

To comply with the norms, the tax department has asked the companies to ensure that the employees link the documents within the month-end, according to a report by News18 Hindi. If an employee fails to link PAN with Aadhaar card by June 30, the company will not credit their salary from the next month, according to the report.

The PAN cards which are not linked to Aadhaar would become useless and declared “inoperative” after June 30. “If a person fails to intimate the Aadhaar number, the permanent account number allotted to such person shall be made inoperative after the notified date in the manner as may be provided by rules,” according to Clause 41 of Section 139AA of the Income Tax Act. Due to coronavirus outbreak in the country, Income Tax department earlier revised the deadline to link Aadhaar card and PAN details last year.

Issued by the Income Tax department, Permanent Account Number (PAN) is a ten-digit unique alphanumeric number. PAN helps the tax officials to prevent tax evasion and frauds as  it is linked to all financial transactions made by an individuals.

Earlier, Employees’ Provident Fund Organization (EPFO) has made it mandatory to link Aadhaar Card with PF UAN (universal account number) to get PF contributions from the employers and other benefits. Now, Employees Provident Fund (EPF) subscribers will have time till September to link their Aadhaar card with the Provident Fund (PF) accounts. The labour ministry amended Section 142 of the Code of Social Security 2020 to implement this new rule.

“Linking of Aadhar with the UAN is mandatory. Effective 1 September 2021, employers will not be able to remit PF for cases where such linking is not done,” said Saraswathi Kasturirangan, partner, Deloitte India.

In Budget 2021, the Union government has added a new section 234H in the Income Tax Act, where an individual will have to pay a penalty if PAN and Aadhaar are not linked after the deadline ends. So if an individual misses the deadline, he or she will be liable to pay a penalty not exceeding more than Rs 1,000.

How to check if your PAN and Aadhaar card is linked?

1) Go the official site of income tax department — www.incometax.gov.in.

2) Under the ‘Our Services’, there will be an option of ‘Link Aadhaar’ on the homepage.

3) Click on ‘Link Aadhaar Know About your Aadhaar PAN linking Status’ option.

4) A new page will open. Enter your PAN and Aadhaar Card details in the mentioned box.

5) Once you fill the details, click on ‘View Link Aadhaar Status’.

6) The status of your Aadhaar-PAN will be displayed on the page. Example: Your PAN (PAN Aadhaar) is linked to Aadhaar number (Aadhar Number) if they are linked.

Source: https://www.news18.com/news/business/income-tax-salary-could-be-stopped-from-next-month-if-you-fail-to-do-this-by-june-3877241.html

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