IT Dept Begins Crackdown on Inactive PANs: Rs 10,000 Fine for Each Transaction

The Income Tax Department has initiated a major crackdown on individuals and entities using inoperative Permanent Account Numbers (PANs) for financial transactions. A PAN becomes inoperative if it is not linked with Aadhaar by the specified deadline. Under the new enforcement drive, any transaction conducted using an inoperative PAN will attract a penalty of Rs 10,000 for each such instance. This stringent measure is aimed at eliminating duplicate and fake PANs, curbing tax evasion, and ensuring a more transparent financial system. The department has urged everyone to verify the status of their PAN and complete the Aadhaar linking process immediately to avoid these heavy penalties. This move is expected to impact a large number of individuals who have not yet complied with the mandatory linking requirement, forcing them to regularize their status to continue conducting financial transactions without facing legal and financial repercussions.