The Revenue department on Friday specified the exceptions for its rule of mandatory quoting of Aadhaar to obtain PAN and file income tax returns enlisting residents of Assam, Jammu & Kashmir, Meghalaya, non-residents, non-citizens, and citizens over 80 years in the exempted category.
The Finance Act, 2017, made it mandatory for taxpayers to quote Aadhaar for filing income tax returns effective July 1. Also, Aadhaar has been made mandatory for applying for PAN with effect from July 1. The tax department, till now, has linked over 1.18 crore Aadhaar with its PAN database.
The government’s decision to make Aadhaar mandatory for filing tax returns has been challenged through PILs in the SC. During proceedings of one of the petitions, the SC had asked the Centre about the reasons to make Aadhaar mandatory for obtaining a PAN card and for filing income tax returns. The government had said that the move would help weed out fake and fraudulent financial accounts. The SC has now reserved its judgment in the case.