Tax payers to link Aadhaar to PAN in filing returns from July 1: CBDT

All tax payers who have been allotted Permanent Account Number (PAN) should intimate their Aadhaar number to the income tax authorities for the purpose of linking both the numbers, the Central Board of Direct Taxes (CBDT) said on Saturday, a day after the Supreme Court upheld the law in this regard.

However, those who do not have Aadhaar and who do not wish to obtain it for the time being, their PAN will not be cancelled, said a press release from the CBDT.

"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," the release said.

It also said 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.

However, for non-compliance of this provision, it said 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.

The release by Meenakshi J.Goswami, Income Tax Commissioner and the official spokesperson of the CBDT, referred to the "landmark" judgement on Friday in which it has upheld section 139 AA of the Income Tax Act as constitutionally valid which required quoting of the Aadhaar number in applying for PAN as well as for filing of IT returns.

Giving operative portions of the judgement, the release said the court also held that Parliament was fully competent to enact section 139 AA of the Act and its authority to make this law was not diluted by the orders of the court.

Therefore, no violation of the earlier Supreme Court orders were found in enacting the provision, the release said.