Don’t File Return? You Need To Link Your PAN with Aadhaar

   Posted on 4th Jul 2017 10:51:39 in Tax Filing


Recently, you may have heard many announcements related to PAN and Aadhaar linking. But, misconceptions were spread when honourable Supreme Court came out with a verdict stating that it is not compulsory to link ‘PAN’ to Aadhaar. But this is a half-truth. If you are thinking that you don’t have to link your PAN and Aadhaar as your income is below exempted limit, then you are in the wrong direction. It is compulsory to link PAN and Aadhaar as per the government notification under section 139AA of Income Tax Act, if you hold both legal documents in your name, irrespective of filing returns. Don’t get confused. The recent verdict of Supreme Court has given interim relief to individuals who have PAN but they still haven’t applied for Aadhaar. Only they are exempted from linking both the documents. All other assesses have to link these documents within the deadlines prescribed by the government. It is mandatory even for those individuals who don’t file ITR and their income is below the base limit. They have to link them by the notified due date. Person who fails to link PAN with Aadhaar within due time under section 139AA of Income Tax Act, his or her PAN number will become invalid thereafter. Therefore, a large population is covered under this rule including the senior citizens, entry-level workers, students, and housewives who have PAN but do not file ITR. They also have to link their PAN and Aadhaar on a priority basis. Don’t worry about how to do the linking and no need to find an expert. You can link both these numbers through the website of Income Tax Department comfortably. People failing to do the linking will have to face problems while doing financial transactions. PAN card will become invalid as the consequence of not furnishing Aadhaar card number. Without PAN, it will become difficult to complete banking and other financial transactions where it is compulsory to quote PAN number. Under Income Tax Act Section 139 AA, every individual allotted with PAN till date - 1st July 2017 and also eligible to obtain Aadhaar Number, has to intimate the same to the tax authority before notified date (release by the government). If these individuals fail to do so, their PAN numbers will be presumed invalid because a provision shall apply stating that this individual does not hold any PAN. This section was confronted on the grounds of violation of Article 19(1) (g) of Constitution in the Supreme Court but, validity of section 139AA of Act was upheld by the court. The judgement has following effects: With effect from 1st July 2017, every individual eligible to obtain Aadhaar card has to quote his or her Aadhaar number or its enrolment number (Given when applied for Aadhhaar) for filing ITR. Same will be required when applying for PAN number. Individual holding PAN as on 1st July 2017 and Aadhaar as well has to furnish Aadhaar Number to tax authorities to link it with your PAN. Partial relief is given to those who do not have Aadhaar and don’t wish to apply for it in a near future so that their PAN number does not get cancelled due to recent changes in the Income Tax Act. This is the complete information related to the process of linking PAN with Aadhaar number.

Connect Socially

Subscribe to our newsletter