Aadhaar cardholders there’s an important update in the rules. Providing the wrong 12-digit biometric id number can attract a fine of Rs 10, 000. Hence, individuals need to be careful while quoting Aadhaar card numbers. In the latest amendments to the Income Tax Act 1961, the income tax department has now allowed Aadhaar cardholders to use the 12-digit biometric id number in lieu of the Permanent Account Number (PAN).
As presented in the Finance Bill 2019, where allows individuals to use Aadhaar in lieu of PAN, it also introduced a penalty for giving a false Aadhaar number.
In the new penalty, rules are applicable only if one uses Aadhaar in lieu of PAN and provide a false number. An individual can use Aadhaar number where quoting PAN is mandatory according to the income tax department rules like filing of income tax returns (ITR), the opening of a bank account.
New Aadhaar Rule:
Aadhaar is issued by the Unique Identity Authority of India but the fine is not imposed by UIDAI instead by the income tax department.
Under Section 272B of the Income Tax Act, 1961, the IT department can fine individuals in case of default in complying with provisions relating to PAN, i.e., failure to obtain, quote, or authenticate PAN. The amount of penalty shall be ₹10,000 for each default.
To be noted, earlier, the fine was limited to PAN. However, ever since the PAN-Aadhaar interchangeability came into force from last September, the penalty has been extended to Aadhaar too.
You are fined if:
a) You provide false Aadhaar number in lieu of PAN.
b) You fail to provide either your PAN or Aadhaar in specified transactions.
c) You only give your Aadhaar number and fail to authenticate biometric identity then it will attract a hefty fine.
Note: Not only individuals, even banks, financial institutions, etc can also be fined if they fail to ensure that the PAN or Aadhaar are duly quoted and authenticated under the new rules.
The fine of Rs 10,000 is levied on each such case which means if one gives the wrong Aadhaar number in 2 forms then you can be fined ₹20,000.
ASLO Attention! Holding more than one PAN card? You need to be worried