Your Next Month Salary could be Stopped if you Fail to Do this by June

New Delhi: 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.

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 individual. 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.

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.