As per an amendment, the govt of India has made it compulsory for citizens with Permanent Account Number (PAN) to get their Aadhaar number linked to it. If the Aadhaar number linking is not done, PAN of the person will be considered invalid for all future transactions.
Less than two months are left for the deadline to link PAN and Aadhaar.
India: With less than two months to go for the deadline to link Permanent Account Number (PAN) and Aadhaar, only a little more than half of PAN holders have linked them, Central Board of Direct Taxes Chairman Sushil Chandra said here on Wednesday.
Mr. Chandra was speaking at an Assocham event.
CBDT Chairman Sushil Chandra said that just 23 crore PAN card holders, out of 42 crore cards issued, have so far linked their cards with biometric ID Aadhaar, even as the deadline to link the two comes to an end on March 31, 2019. By linking with Aadhaar, we will know whether there are any duplicate PAN or not. And there are certain duplicate PANs… If it is not linked, we may cancel the PAN also, Chandra said. He added that once Aadhaar is linked with PAN and PAN is linked with bank account, the ITD can find out spending pattern and other details of the assessees.
The Supreme Court has made it mandatory that income-tax returns will be filed with Aadhaar and the last date for linking PAN is March 31. The apex court in September last year had declared the Centre s flagship Aadhaar scheme as constitutionally valid.
According to Section 139AA of the Income Tax Act, inserted in 2017, not only is PAN mandatory for filing income tax returns but it is also mandatory for applying for a PAN card, which means that going ahead, all new PAN cards issued will automatically be linked to Aadhaar. The Section also says that “in case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be deemed to be invalid”.