Aadhaar relief for I-T only till end of June

The Central Board of Direct Taxes (CBDT) on Saturday clarified that for filing of tax returns and for obtaining permanent account number (PAN), Aadhaar was compulsory, after the Supreme Court on Friday upheld the requirement introduced in Finance Act, 2017.

CBDT, the apex policy making body for direct taxes, stated that the “partial relief” granted by the apex court of non-cancellation of PAN for not linking Aadhaar numbers with it, is available only in the case of those who do not have Aadhaar and do not wish to obtain it for the time being.

“From 1, July, 2017, onwards, every person eligible to obtain Aadhaar must quote their Aadhaar number or their Aadhaar Enrolment ID number for filing of income tax returns as well as for applications for permanent account number (PAN),” said CBDT in a note on the “effect of the judgement”.

“However, those assessees who are not Aadhaar card holders and do not comply with the provision of Section 139AA (2) of the Income Tax Act (which prescribes linking of Aadhaar with PAN), their permanent account number (PAN) cards will be not treated as invalid for the time being,” further said the statement.

The CBDT position is that if one does not have Aadhaar and does not apply for it, his or her PAN will not be invalidated, but the person will still need Aadhaar to file tax returns.