The Income Tax department has started crack down on use of in-operative Permanent Account Number(PAN) with hefty penalties of upto Rs 10,000 for financial transactions.
The use of multiple pan cards and pan not linked to aadhar would make them inactive and attract penalties for every transactions. Opening a bank account, investing, buying property, applying for a loan, or even filing your income-tax return with an in-operative would lead to penalties imposed by the taxmen.
“anyone who continues to quote or use an in-operative Permanent Account Number would be heavily penalised for every financial transactions,” confirmed a senior tax official.
The Income Tax Department has mandated the linking of PAN with Aadhaar to streamline tax administration and failure would renders the PAN inoperative and restricting its use in financial transactions.
The tax department has started using advanced data analytical tools and AI to identify transactions using inactive PAN to classify ITR filing as defective and refuse refund claims.
