PAN-Aadhaar linking mandatory now; ITR Filers to comply by 31 March 2019: CBDT
PAN-Aadhaar linking is now mandatory and Income Tax Return (ITR) filers have to comply with the PAN quoting requirements of amended Section 139AA, latest by 31 Sept. 2019.
Constitutional validity of Aadhaar has been upheld by the Hon’ble Supreme Court of India in September 2018. Consequently, in terms of Section 139AA of Income Tax Act, 1961 and order dated 30.6.2018 of the Central Board of Direct Taxes, Aadhaar-PAN linking is mandatory now which has to be completed till 31.3.2019 by the PAN holders requiring filing of Income Tax Return.
CBDT notifies that Aadhaar Number/ Enrollment ID is Mandatory for PAN Application w.e.f. 1 July 2017
CBDT has notified that quoting of Aadhaar/ Enrollment Number is mandatory w.e.f. 1 July 2017 for new PAN Application in Form 49A thru the Income-tax (17th Amendment) Rules, 2017, besides intimation of Aadhaar by existing PAN holders, wherever applicable, as under:
CBDT’s Procedure for Intimating AADHAAR Number PAN holder and quoting in PAN applications
The CBDT has notified the Procedure of intimating AADHAAR Number to Income Tax Department by Permanent Account Number(PAN) holder and quoting of the same in PAN applications in compliance of Section 139AA of Income Tax Act, as under:
Exemption to Non Residents/ Super Senior Citizens/ Foreign Citizens/ Residents of Assam, J&K and Meghalaya from Requirement for Quoting Aadhaar for Filing of ITR/ PAN Application w.e.f. 1 July 2017: CBDT Notification
CBDT/ Govt. has notified that Non Residents/ Super Senior Citizens/ Foreign Citizens/ Residents of Assam, J&K and Meghalaya shall be exempt from the requirement of Quoting Aadhaar/ Enrollment ID for Filing of ITR or PAN Application, w.e.f. 1 July 2017, as under:
CBDT Notification No. 37/2017 Income Tax dt. 11 May 2017
Section 139AA of the Income-tax Act, 1961 as inserted by the Finance Act, 2017 provides for mandatory quoting of Aadhaar/ Enrollment ID of Aadhaar application form for filing of return of income and for making an application for allotment of Permanent Account Number with effect from 1 July, 2017.
Section 139AA(3) of the Act empowers the Central Government to notify the person(s) or State(s) to which the requirement of quoting of Aadhaar/ Enrollment ID shall not apply. Accordingly, the Central Government vide Notification No. 37/217 dt. 11 May, 2017 has notified that the requirement of quoting of Aadhaar/ Enrollment ID shall not apply to the following individuals, if they do not possess the Aadhaar/ Enrollment ID:-
i) An individual who is residing in the state of Assam, Jammu and Kashmir and Meghalaya.
ii) An individual who is a non-resident as per the Income-tax Act, 1961.
iii) An individual of the age of eighty years or more at any time during the previous year.
iv) An individual who is not a citizen of India.
This notification shall come into force with effect from the 1 July, 2017.
Income Tax Department simplifies linking PAN with Aadhaar
The Income Tax Department has simplified the process for taxpayers to link their PAN with Aadhaar, in response to to grievances of taxpayers regarding difficulties in linking PAN with Aadhar, where names did not match in both systems, like Name with initials in PAN and expanded initials in Aadhaar or vice versa.
Taxpayers can visit e-filing website of the Income Tax Deptt. and click on the link on the left pane-> Link Aadhaar, provide PAN, Aadhaar No. and ENTER NAME EXACTLY AS GIVEN IN AADHAAR CARD (avoid spelling mistakes) and submit. After verification from UIDAI, the linking will be confirmed by the Income Tax Deptt.
In case of any minor mismatch in Aadhaar name provided by taxpayer, when compared to the actual data in Aadhaar, One Time Password (Aadhaar OTP) will be sent to the mobile registered with Aadhaar. Taxpayers should ensure that the ‘Date of Birth’ and ‘Gender’ in PAN and Aadhaar records are exactly same. In a rare case where Aadhaar name is completely different from name in PAN, then the PAN-Aadhaar linking will fail and taxpayer will be prompted to change the name in either Aadhaar or in PAN database.
There is no requirement to login or being registered on E-filing website. This facility can be used by anyone to link their Aadhaar with PAN.
This facility is also available after login on the e-filing website under Profile settings and choose Aadhaar linking. The details as per PAN will be pre-populated. Enter Aadhaar no. and ENTER NAME EXACTLY AS GIVEN IN AADHAAR CARD (avoid spelling mistakes) and submit.
Taxpayers are requested to use the simplified process to complete the linking of Aadhaar with PAN immediately. This will be useful for E-Verification of Income Tax returns using OTP sent to their mobile registered with Aadhaar.
Quoting of Aadhaar not Mandatory for PAN Application and ITR Filing by Non-residents
The CBDT has clarified that Quoting of Aadhaar is not Mandatory for Non-residents while making PAN Application and/ or ITR Filing w.e.f. 1 Jul. 2017, as the same is mandatory for Residents only, as under:
Section 139AA of the Income-tax Act, 1961 as introduced by the Finance Act, 2017 provides for mandatory quoting of Aadhaar / Enrollment ID of Aadhaar application form, for filing of return of income and for making an application for allotment of Permanent Account Number with effect from 1st July, 2017.
It is clarified that such mandatory quoting of Aadhaar or Enrollment ID shall apply only to a person who is eligible to obtain Aadhaar number. As per the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, only a resident individual is entitled to obtain Aadhaar. Resident as per the said Act means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrollment. Accordingly, the requirement to quote Aadhaar as per section 139AA of the Income-tax Act shall not apply to an individual who is not a resident as per the Aadhaar Act, 2016.
Aadhaar Linking with Mobile/ Bank Account deferred Indefinitely (beyond 31 March) by Hon’ble SC
Govt./ Hon’ble SC had earlier set/ extended deadline upto 31 Dec. 2017/ 31 March 2018 for linking of Aadhaar with Mobile Phone, Bank Account, etc. However, as per the interim Order/ Directions issued by the Hon’ble SC on 13 March 2018, the deadline for linking of Aadhaar with Mobile Phone/ Bank Account, has been deferred indefinitely, (i.e. beyond 31 March 2018) pending decision on various petitions against such mandatory linking. However, this extension will not affect the linking of Aadhaar with the disbursal of subsidies and other benefits under social welfare schemes of the Govt. of India.
This decision will provide a relief for those who have not yet applied/ obtained/ linked their Aadhaar with certain financial services wherein Govt. had earlier issued directions for mandatory linking thereof, as per above deadlines.
CBDT also has extended the deadline for linking of PAN Card with Aadhaar, on 27 March 2018, upto 30 June 2018.