Archive · 14 Jun 2025
₹10,000 Fine for Using Inoperative PANs in Financial Transactions
If your Permanent Account Number (PAN) isn't linked to your Aadhaar, it's considered inactive.
The government is cracking down on using these inactive PANs for money stuff.
If you do, you could be fined ₹10,000 for each time you use it, like when you open a bank account or pay taxes.
The tax department is using AI to catch people using inactive PANs.
If you accidentally have two PANs, you should get rid of the extra one to avoid problems.
The Income Tax Department is strictly enforcing PAN-Aadhaar linking.
Using an inoperative PAN in financial transactions may lead to a ₹10,000 fine per transaction.
An inoperative PAN is one not linked to Aadhaar, invalid for most tax and financial activities.
The department monitors high-value transactions, incorrect refunds, and tax filings using AI.
Experts suggest surrendering additional PANs if multiple exist.
- Who
- Individuals using inoperative PANs.
- What
- The Income Tax Department is penalizing the use of inoperative PANs in financial transactions.
- When
- The enforcement and penalties are effective now.
- Where
- India.
- Why
- To strengthen identity verification and reduce tax evasion.
Genuine Mistakes
Fraudulent Activity
Cause for Penalties
Genuine Mistakes
Mistakes such as using an extra PAN due to a change in name or multiple PANs, may lead to a penalty.
Fraudulent Activity
Deliberate use of fake PANs for illegal activities.
- Penalty
- ₹10,000 per transaction
- Affected Transactions
- Bank accounts, investments, property, loans, tax returns
- PAN Inactivity
- Unlinked to Aadhaar
- Monitoring
- AI and data analytics
- Expert Advice
- Surrender extra PANs