Fee for default relating to intimation of aadhaar number.

430.

Without prejudice to the provisions of this Act, where a person is required to intimate his Aadhaar number under section 262(6) and such person fails to do so on or before such date as prescribed, he shall be liable to pay such fee, as prescribed, not exceeding one thousand rupees, at the time of making intimation under that sub-section after the said date.

Explanation

Section Summary:

Section 430 of the Income Tax Act imposes a fee for failing to intimate one's Aadhaar number by the prescribed deadline. This section applies when a person is required to provide their Aadhaar number under Section 262(6) but fails to do so on or before the specified date. The fee, which cannot exceed ₹1,000, is payable when the Aadhaar number is eventually intimated after the deadline.

Key Changes:

• Introduction of a Fee: Previously, there was no explicit fee for failing to intimate the Aadhaar number by the prescribed date. This section introduces a monetary penalty for non-compliance.
• Cap on Fee: The fee is capped at ₹1,000, ensuring that the penalty is not excessively burdensome.

Practical Implications:

• For Individuals: Taxpayers who are required to provide their Aadhaar number (e.g., for filing income tax returns or linking it with PAN) must ensure timely compliance to avoid paying the fee.
• For Businesses: Employers or entities responsible for collecting Aadhaar details from employees or clients must ensure that the information is collected and intimated within the prescribed timeline to avoid penalties.
• Compliance Burden: Taxpayers must be vigilant about deadlines and ensure that their Aadhaar number is intimated on time to avoid additional costs.

Critical Concepts:

• Aadhaar Number Intimation: This refers to the process of providing one's Aadhaar number to the Income Tax Department, typically for linking it with PAN or other tax-related purposes.
• Prescribed Date: The specific deadline for intimating the Aadhaar number will be notified by the government or relevant authorities.
• Fee vs. Penalty: The fee under this section is not a penalty but a charge for delayed compliance. It is capped at ₹1,000, making it a relatively minor financial consequence.

Compliance Steps:

1. Check Deadlines: Be aware of the prescribed date for intimating your Aadhaar number under Section 262(6).
2. Timely Intimation: Ensure that your Aadhaar number is intimated to the Income Tax Department before the deadline.
3. Payment of Fee: If you miss the deadline, pay the fee (up to ₹1,000) at the time of intimating your Aadhaar number after the due date.

Examples:

• Scenario 1: Mr. Sharma is required to link his Aadhaar number with his PAN by March 31, 2024. He forgets to do so and intimates his Aadhaar number on April 15, 2024. Under Section 430, he will be liable to pay a fee of up to ₹1,000 at the time of intimation.
• Scenario 2: A company collects Aadhaar details from its employees for tax compliance purposes. If the company fails to intimate the Aadhaar numbers of its employees by the prescribed date, it may be liable to pay the fee for each delayed intimation.

This section emphasizes the importance of timely compliance with Aadhaar-related requirements to avoid unnecessary fees.