The Central Board of Direct Taxes (CBDT) has mandated that the linking of PAN with aadhaar should be completed by the taxpayers by 31st March 2019.
The 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 the filing of Income Tax Return.
Earlier this month, the Supreme Court has also held that the rule must be compulsorily followed from the assessment year 2019-20.
The CBDT announcement said that “the Procedure for Aadhaar PAN linking has been published vide notification no. 7 dated 29.6.2017 by Pr. Director General of Income Tax(Systems). Advertisements were also published in leading newspapers for information of PAN holders.”
The Finance Act, 2017 inserted Section 139AA to the Income Tax Act mandating quoting of Aadhaar or enrolment ID of Aadhaar application form for filing of income tax returns and making application for allotment of PAN (Permanent Account Number) with effect from July 1, 2017. Non-compliance with the above provision would render the PAN of the defaulting individual invalid, attracting penalty proceedings under the Income Tax Rules.
