Higher Tax on Invalid PAN Users: The Income Tax Department monitors the financial transactions of people with PAN. The Income Tax Department charges a fine of Rs 10,000 for using an inoperative PAN, while heavy tax is levied on money transactions.
New Delhi: According to the Income Tax Department, PAN users who have not linked their PAN with Aadhaar till June 30, 2023, their PAN will become inactive or invalid from July 1. Many types of transactions and works cannot be done if the PAN is invalid. Whereas, on invalidation of PAN, people will have to pay heavy tax on 3 types of money transactions.
Income Tax Department issues PAN Card to every citizen. With its help, it helps in monitoring the financial transactions of the people and helps in preventing cases like tax evasion and fraud. Whereas, PAN is also used as an identity card for citizens.
10,000 fine for using inactive PAN
The Income Tax Department has been appealing to link PAN users with Aadhaar since last year. First free linking facility was also given and also extended the last deadline for linking 2 times. But, the PAN which is not linked to Aadhaar till June 30 has been told to become inactive from July 1. There is a provision of Rs 10,000 fine in the Income Tax Act for using an invalid PAN.
3 Financial Transactions Where Invalid PAN Will Pay Higher Tax
- More tax will have to be paid on the sale or purchase of a vehicle other than a motor vehicle or a two-wheeler.
- Additional tax will be payable on the sale or purchase of any immovable property for an amount of Rs 10 lakh or more. Or according to Section 50C of the Income Tax Act, more tax will have to be paid if the valuation exceeds ten lakh rupees by the Stamp Valuation Authority.
- Extra tax will have to be paid on every transaction above Rs 2 lakh for purchase or sale of goods other than immovable property and vehicles.
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