Amidst the rush for linking Aadhaar with the permanent account number (PAN), here’s a clarification: July 1 is not the last day. In fact, linking the two becomes mandatory from July 1 for all those who have already obtained a PAN. Further, those applying for a PAN after July 1, will be required to quote their Aadhaar number in the application form. According to section 139AA of the Income Tax Act, 1961, every person who has an Aadhaar number and a PAN is required to link the two “on or before a date to be notified by the Central Government” — which has not yet been clarified.
(1) Every person who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number—
(i) in the application form for allotment of permanent account number;
(ii) in the return of income
(2) Every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to such authority in such form and manner as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette.
The Income Tax Department’s website now hosts a new page to link Aadhaar with PAN — https://incometaxindiaefiling.gov.in/e-Filing/Services/LinkAadhaarHome.html — by entering both details and other personal information.
Read: Linking your Aadhaar with PAN: Here’s all you need to know. Click here.
Through an amendment to tax proposals in the Finance Bill 2017-18, Finance Minister Arun Jaitley recently made Aadhaar mandatory for filing income tax returns, and linking of Aadhaar with PAN to curb tax evasion through the use of multiple PAN cards.
Meanwhile, the Supreme Court earlier this month had upheld the validity of the Income Tax Act provision but put a partial stay on its implementation until the issue of right to privacy is addressed by a constitutional bench. The government had issued a notification on the same, stating:
(i) From July 1, 2017 onwards every person eligible to obtain Aadhaar must quote their Aadhaar number or their Aadhaar Enrolment ID number for filing of income tax returns as well as for applications for PAN;
(ii) Everyone who has been allotted permanent account number as on the 1st day of July, 2017, and who has aadhaar number or is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to income tax authorities for the purpose of linking PAN with Aadhaar;
(iii) However, for non-compliance of the above point No.(ii), only a partial relief by the Court has been given to those who do not have Aadhaar and who do not wish to obtain Aadhaar for the time being, that their PAN will not be cancelled so that other consequences under the Income Tax Act for failing to quote PAN may not arise.
(With inputs from PTI)