Income Tax

• Till toady i.e 30-06-2017, it is floating that, if before July 1, 2017 PAN is not linked with Aadhar, then the PAN will become invalid, but that’s not the case actually.
• The Government has not declared yet anything in this context.
• Indeed the Aadhar linking to PAN will become mandatory from July 1, but its not mandatory to link before July 1.
• No matter, whatever be the income,whether it is below taxable limit also its mandatory for every individual to quote their PAN with Aadhar. In nutshell, senior citizens, students, entry- level workforce, housewives etc., irrespective of their income (be its nil also) have to link their PAN with Aadhar.

Section 139AA of Income Tax Act 1961 : Quoting of Aadhar number :

(1) Every person, who is eligible to obtain Aadhar number shall, on or after the 1st day of July, 2017, quote Aadhar number

(i) in the application form for allotment of permanent account number &

(ii) in the return of income

• Provided that where the person does not possess the Aadhar Number, the Enrollment ID of Aadhar application form issued to him at the time of enrollment shall be quoted in the application for permanent account number or, as the case may be, in the return of income furnished by him.
• Every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhar number, shall intimate his Aadhar number to such authority in such form and manner as may be prescribed on or before a date to be notified by the Central Govt. in the Official Gazette:
• Provided that in case of failure to intimate the Aadhar number, the permanent account number allotted to the person shall be deemed to be invalid and the other provisions of this Act shall apply as if the person had not applied for allotment of permanent account number".
• The provisions of this section shall not apply to such person or class or classes of persons or any State or part of any State, as may be notified by the Central Government in this behalf, in the Official Gazette.