Incurring a Penalty of Rs 6,000 for Failing to Link PAN with Aadhaar: A Guide to Income Tax Return.


Filing your Income Tax Return (ITR) is an important responsibility for taxpayers to fulfill their obligations and report their income to the tax authorities. In India, the government has stressed the significance of linking the Permanent Account Number (PAN) with Aadhaar, the unique identification number for Indian residents. Failure to link PAN with Aadhaar can have several consequences, including incurring penalties and potential difficulties in filing ITR.

Incurring a Penalty of Rs 6,000 for Failing to Link PAN with Aadhaar

PAN Deactivation and its Impact:

From July 1, 2023, PAN will become inactive if it is not linked to Aadhaar by June 30, 2023. Consequently, individuals may face challenges in filing their income tax returns before the July 31, 2023 deadline. If a penalty is paid, an inactive PAN can only become active again after a waiting period of 30 days.

Penalties for Late ITR Filing:

If your PAN is inactive, there is a possibility of missing the ITR filing deadline. For individuals with an annual income exceeding Rs 5 lakh, a penalty of Rs 5,000 is applicable for late ITR filing. This penalty is in addition to the cost of linking PAN and Aadhaar, which amounts to Rs 1,000. Therefore, the total expenditure for such individuals is Rs 6,000.

For individuals with a total income not exceeding Rs 5 lakh, the late filing fee for a belated ITR is Rs 1,000. When considering the PAN-Aadhaar linking fee, the total payment required is Rs 2,000.

Importance of Timely ITR Filing and PAN-Aadhaar Linking:

It is strongly advised for taxpayers to file their income tax returns and complete the PAN-Aadhaar linking process by July 31, 2023. Failing to do so may result in the need to file a belated return, which can be done until December 31, 2023. However, non-compliance with the PAN requirement can cause issues in certain transactions.

What if you have already paid the penalty for PAN-Aadhaar linking?

If you have already paid the penalty for linking your PAN and Aadhaar on or before June 30, 2023, the income tax department has provided clarification. According to a tweet by the department, cases where the fee payment and consent for linking have been received but the actual linking was not completed by June 30, 2023, will be duly considered.

Therefore, if you have paid the Rs 1,000 penalty by the deadline, you can easily link your PAN with Aadhaar and submit your ITR on time. By doing so, you can avoid incurring a late filing charge and ensure compliance with the income tax regulations.


As the income tax filing season approaches, it is crucial for taxpayers to link their PAN with Aadhaar and file their ITRs on time. Failure to do so can result in penalties and complications during the filing process. By paying the necessary fees and completing the PAN-Aadhaar linking before the deadline, individuals can fulfill their obligations and avoid unnecessary financial burdens. Stay compliant and ensure a smooth income tax return filing experience.

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