PAN Card: If you are still using your old PAN card, then be careful. The Income Tax Department has started taking strict action against those cardholders whose PAN card has been deactivated, but they are still using it for financial and banking activities.
Penalty up to Rs 10,000 on inactive PAN card
Under Section 272B of the Income Tax Act, a penalty of up to Rs 10,000 can be imposed for using an inactive PAN card. Many taxpayers are unaware that their PAN card is no longer valid. They are using it unknowingly, due to which the sword of legal action is now hanging over them.
Danger for those who do not link Aadhaar
According to tax experts, those who have not yet linked their PAN card with Aadhaar, their PAN has become inactive. In such a situation, it is important to complete the process of linking with Aadhaar as soon as possible, so that any kind of financial penalty or legal action can be avoided.
For what purposes is the PAN card used?
PAN card is not only mandatory for filing Income Tax Return (ITR) but also for banking, investment, property purchase and sale, loan application and other major financial transactions. Using an inactive card can hinder your financial work and you may also have to pay a heavy penalty.
How to know whether your PAN card is active or not
You can check whether your PAN card is active or not from the comfort of your home. For this, go to the Income Tax Department’s e-filing website and select the Verify Your PAN option. Enter the required information like PAN number, full name, date of birth and mobile number. After OTP, your PAN status will appear on the screen. If it is inactive, then link it to Aadhaar immediately.