Skip to main content

Aadhaar PAN linking must from July 1


Individuals having permanent account number (PAN) will have to link it to their existing 12digit biometric Aadhaar number from July 1,a government notification said.

Aadhaar number or Aadhaar enrolment ID will also have to be mandatorily quoted while applying for PAN, which is a must for filing tax returns, opening of bank accounts and financial transactions beyond a threshold.

Finance Minister Arun Jaitley, through an amendment to tax proposals in the Finance Bill for 2017-18, had made Aadhaar mandatory for filing income tax returns (ITR) and provided for linking of PAN with Aadhaar to check tax evasion through the use of multiple PAN cards.

The Supreme Court had earlier this month upheld the validity of an Income Tax Act provision making Aadhaar mandatory for allotment of PAN cards and ITR filing, but had putapartial stay on its implementation till a Constitution Bench addressed the issue of right to privacy.

Following the Supreme Court ruling, the revenue department has notified amendments to the income tax rules dealing in PAN application. The department said, “Every person who has been allotted PAN as on July 1, 2017, and who, in accordance with the provisions of subsection (2) of Section 139AA, is required to intimate his Aadhaar number...

to the principal director general of income tax (systems) or DGIT (systems).” Besides, it entrusted principal DGIT (systems) or DGIT (systems) with specifying the format and standard along with procedure for verification of documents filed with PAN application or intimation of Aadhaar.

As many as 20.7 million taxpayers have already linked their Aadhaar with PAN. There are over 250 million PAN card holders in the country, while Aadhaar has been issued to 1,150 million people.

Referring to the Supreme Court ruling, the Central Board of Direct Taxes, the apex policy making body for the tax department, had then said the linking of Aadhaar and PAN will bea “must” for filing of ITR and obtaining PAN from July 1.

The apex court order had only givena “partial relief” to those who do not have an Aadhaar or an Aadhaar enrolment ID, and the taxman, hence, “will not cancel” the PAN of such individuals, it had ruled.

“Only a partial relief by the court has been given to those who do not have Aadhaar and who do not wish to obtain Aadhaar for the time being, that their PAN will not be cancelled so that other consequences under the IT Act for failing to quote PAN may not arise,” the CBDT had said.

Business Standard New Delhi, 29th June 2017

Comments

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...

Luxury carmakers urge clarity on GST rates to boost festive season sales

  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...

Sebi proposes tighter norms for green bond third-party reviewers

  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...