The Income Tax Department has issued a new directive mandating the linkage of PAN (Permanent Account Number) with Aadhaar for all individuals. According to the order, failing to comply with this requirement will result in penalties.
The order, which affects employees across various sectors including the Bangalore Metropolitan Transport Corporation (BMTC), underscores the necessity for linking PAN numbers with Aadhaar. Despite repeated notices from the BMTC accounts department regarding this requirement, a significant number of employees have yet to complete the linkage.
In response to non-compliance, the Income Tax Department has imposed stringent measures. Companies, including BMTC, which have not ensured the linkage of Aadhaar and PAN numbers for their employees, now face a penalty amounting to 20% of the affected employees’ income. This penalty is in addition to a 20% income tax charge on the total income (monthly salary) of those employees who have not linked their PAN with Aadhaar.
The order explicitly states that unit managers, accounts superintendents, supervisors, and income tax subject managers are directly accountable should action not be taken promptly to ensure compliance with the PAN-Aadhaar linkage mandate.
The Income Tax Department enforced compliance with PAN-Aadhaar linkage, stressing the consequences for non-adherence by both employees and their respective employers.
