The government has notified rules that require all assessees to mandatorily link their Aadhaar number with the Permanent Account Number (PAN), effective from 1 July.
The Central Board of Direct Taxes said:
Everyone who has been allotted PAN as on the 1st day of July 2017, and who has Aadhaar number or is eligible to obtain Aadhaar number, shall intimate it to the income tax authorities for the purpose of linking PAN with Aadhaar.
There has been confusion regarding the date mentioned in the announcement with many believing that the linking has to be done before 1 July, after which the PAN card will stand annulled. However, as per the notification, the process has been made mandatory from 1 July onwards and not before, for those who have been allotted a PAN and Aadhaar identification.
The notification also said that from 1 July 2017 onwards every person eligible to obtain Aadhaar must quote their Aadhaar number or their Aadhaar enrolment ID number for filing income tax returns as well as for PAN applications.
If the Aadhaar number is not allotted, then the enrolment ID of Aadhaar application form needs to be given, the notification said. However, for 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).
However, for non-compliance of this provision, it said only partial relief by the court has been given to such people, and that their PAN will not be cancelled so that other consequences under the Income Tax Act for failing to quote PAN do not arise.
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