To give the strength to Goods and Service Tax (GST), the Government of India has decided to made it mandatory to link Aadhaar Card Numbers with PAN Card Numbers of all the taxpayers in India which is effected from July 1.
Aadhaar is a bio-metric authentication issued by the UIDAI and PAN is a 10 digit alphanumeric number alloted by Income Tax Department to the individuals
Union Finance Minister Arun Jaitley has come up with proposals of the Finance Bill for 2017-18 through an amendment of tax proposals. In this amendments he had made the Aadhaar number is mandatory for filing the income tax returns and this Aadhaar number is also linked with PAN card number to checking up the tax evasion through the usage of multiple PAN cards these days in India.
After Amending the income tax rules, the Government has made quoted of the 12 digit bio-metric Aadhaar Card number or you also quoting with the enrollment ID if your Aadhaar Card is not issued yet at the time of application of PAN Card Number.
The rules will come into force from July 1, 2017, which is said by the department of Revenue while amending the Rule no. 114 of Income Tax Act, which is dealing in the application for the allotment of PAN Cards.
Even the individuals who are not required to file income tax returns due to some income being below the exemption limits but holds both PAN card and Aadhaar Card are also mandatory to link both of them by date to be notified as per section 139AA.
This means those peoples such as senior citizens, students, housewives etc who have both and PAN and Aadhaar card but do not file returns will have to linked both the numbers compulsorily. This can be done via income tax department’s e-filing website.
If those individuals do not linked their PAN and Aadhaar card by a date then their PAN card number will become invalid according to the Section 139AA of the Income Tax Act which was already introduced in the last budget.
The Department of Revenue stated that every individual of India who has been allotted Permanent Account Number(PAN) as on July 1, and in accordance with the provisions of sub-section of Section 139AA is required to linked his/her Aadhaar Card Number to the principal Director General of Income Tax (DGIT systems).
There are over 25 crore PAN card Holders in the Country and Aadhaar card has been issued to 111 crore people in India.
The Supreme Court orders provides interim relief to those who may have PAN but not have Aadhaar Card or those who may have Aadhaar but not have PAN card or have not applied for one as yet from having to compulsory link the both of them.
If the individual does not linked their PAN card and Aadhar card as per the section 139AA then the individual’s PAN card would become invalid. and if your PAN is become invalid then you will face many problems in banking, in transactions and in other financial servies which requires a PAN to be submitted.