If you have Aadhaar, it must be linked to PAN, rules SC

The Supreme Court has upheld the law that makes it mandatory for Aadhaar-card holders to give the unique identity number while filing Income Tax (IT) returns and allotment of PAN.

It however exempted those do not have an Aadhar, till the larger issue of privacy is decided.

A bench headed by Justice AK Sikri on Friday made it optional for those who have enrolled for Aadhaar but not yet been allotted one, by laying down that no penal action may be initiated against those who do not have Aadhaar and don’t link it.

As per the amended IT law the authorities can render a PAN invalid if it is not linked with Aadhaar. Quoting of Aadhaar or enrolment ID of Aadhaar application form would be compulsory for filing returns and applying for PAN beginning July 1.

The court’s verdict came on petitions filed by social activists, including CPI leader Binoy Viswam, stating the Centre cannot “belittle” the top court’s 2015 order that stated that the unique identification number is voluntary. SC had on May 4 reserved its verdict.

The larger issue on whether right to privacy is a fundamental right, and if the law making Aadhaar mandatory for citizens violates it, is pending before a Constitution Bench of the Supreme Court. Justice Sikri’s bench said that PAN card without Aadhaar number cannot be made invalid till the Constitution bench decides on that pending issue.

The court upheld the legislative competence of the Parliament in enacting the law.

The petitioners’ contention that the IT law could not have been amended in the wake of the SC’s 2015 order was rejected. The court said there was no conflict between the provision of the IT Act and the Aadhaar Act.

There would be no retrospective implementation of the law to invalidate the PAN and previous transactions won’t be affected or nullified, the SC said.

Addressing the concern expressed by petitioners over data leakage, the bench asked the Centre to look into the grievances and said steps must be taken to instill public confidence that their personal data is safe and Aadhar is not porous as is being feared.

The petitioners had expressed apprehension that there was a possibility of the data being compromised.

“The government to take proper and appropriate steps and the scheme in this regard has to be devised at the earliest till confidence among the citizens that the data would not be leaked,” the bench said.

Rejecting the argument that the law impinged upon the right to equality and right to carry out business freely, the court said the new provisions were not discriminatory.

It lauded the government’s effort to weed out fake and duplicate PAN cards, which is the aim of the amended law.

The bench clarified that it has not touched upon the issue of Right to Privacy and other aspects that the Aadhaar scheme also affects the human dignity which has to be decided by the Constitution bench.