Aadhaar card is a 12-digit unique identification number having the biometrics records of Indian residents. The government has made it mandatory to link one’s Aadhaar number with bank accounts, mobile numbers, PAN card and other services. For a lot of services, the Aadhaar card is a mandatory KYC. As of now there are more than 10 services or records which have to be linked with Aadhaar number. Among them, the linking of PAN and Aadhaar number has been a matter of litigations and multiple extensions.
CBDT keeps on extending the last date to link the two records. Hitherto the deadline has been extended five times. Recently CBDT has extended the last date to March 31, 2019. If you are wondering that this extension would be a relaxation against the mandatory quoting of Aadhaar number in ITR, then the answer is an emphatic ‘No’. Let’s find out why?
Section 139AA of the Income-Tax Act, which came into effect from July 1 2017, requires every person who is eligible to obtain Aadhaar to quote Aadhaar number or Enrolment ID while applying for PAN or filing return of income. In other words, a taxpayer has to do two compliances – Linking of Aadhaar number with PAN and quoting of Aadhaar number in ITR. The government has extended the last date for the first requirement, i.e., linking of two records, but the second requirement is still valid and mandatory as of now.
You may have some queries with regard to Aadhaar-PAN linking, which we have tried to resolve through various FAQs answered below.
FAQ 1: Is it mandatory to quote Aadhaar in ITR?
Yes, it is mandatory for every person, who is eligible to obtain Aadhaar, to quote the Aadhaar number or Aadhaar Enrolment ID number in the ITR Form and application for allotment of PAN.
An exemption has been given to the following individuals from quoting the Aadhaar number or Enrolment ID in ITR:
1. An individual residing in the states of Assam, Jammu and Kashmir and Meghalaya
2. A non-resident individual as per the Income-Tax Act
3. An individual whose age is 80 years or above
4. An individual who is not a citizen of India.
FAQ 2: In case of HUF, Partnership Firm and other non-corporate organisations, whose Aadhaar number is to be used for linking with PAN?
In case of HUF, the Aadhaar number of Karta shall be linked with the PAN card of HUF. In case of other non-corporate organisations, Aadhaar number of the principal person of the organisation shall be linked with the PAN card of the organisation.
FAQ 3: Is it mandatory for an NRI or a foreign citizen living in India to link the Aadhaar number with PAN?
No, it is not mandatory for an NRI or foreign citizen living in India to link the Aadhaar number with PAN. The income tax return does not show any error if the Aadhaar number field is left blank if the status of the taxpayer is ‘Non-Resident’ as a special exemption has been granted to NRI or a foreign citizen from quoting the Aadhaar number in ITR.
If an individual had obtained the Aadhaar while he was a resident in India and subsequently became a non-resident, then he would have an option to quote the Aadhaar No. in ITR. It is advisable for a taxpayer to mention the Aadhaar No. in ITR if he has the same.
An individual can apply for the Aadhaar card if he has resided in India for an aggregate period of 182 or more in 12 months immediately preceding the date of application for enrolment. Thus, a Person of Indian Origin or Foreign National can apply for Aadhaar only if they have been in India for 182 days or more.
FAQ 4: Is it mandatory to link Aadhaar number with PAN to file income tax return?
No, it is not mandatory for a person to link Aadhar with PAN so as to file the income tax return on or before July 31, 2018 as such linking can be done on or before March 31, 2019. As mentioned earlier, these are two different requirements. If Aadhaar No. is not mentioned in ITR, the utility shall show an error and e-filing website shall not accept the return. Without linking the two records, a resident person can file the return if he just mentions it in the income-tax return.
FAQ 5: Whether PAN will be treated as invalid if a person doesn’t link it with Aadhaar?
As per proviso to Sec 139AA(2), in case assessee fails to intimate the Aadhaar Number, the PAN allotted to the person shall be treated as invalid and the other provisions of this Act shall apply, as if the person has not been allotted PAN.
However, in the case of Binoy Viswam v. Union of India [2017] 82 taxmann.com 211, the Supreme Court partially stayed the operation of Proviso to Section 139AA(2). It held that if the assessee does not hold the Aadhaar number, then PAN should not be considered as invalid. However, if the assessee is holding the Aadhaar number, he must intimate it to the department.
Hence, PAN of a person will not be treated as invalid if it isn’t linked with Aadhaar number only in those cases where taxpayers don’t possess the Aadhaar number. The Apex Court has not given any relief in other cases.
FAQ 6: How to link Aadhaar number with PAN?
If your Aadhaar number isn’t yet linked with PAN card, then every time you login on e-filing portal, you shall be shown a pop-up message asking you to link the Aadhaar number with PAN. Use the link given in the pop-up window to link the Aadhaar with PAN.
Alternatively, you can also follow the following steps to link Aadhaar number with PAN:
1. Login to e-filing portal https://www.incometaxindiaefiling.gov.in
2. Go to ‘Profile Settings’ and click on ‘Link Aadhaar’
3. Enter your ‘Aadhaar number’, ‘Name as per Aadhaar’ and click on ‘Link Aadhaar’. In case you Aadhaar Card is carrying just year of birth, then you have to check on the option on ‘I have only year of birth in Aadhaar Card’
4. You are also required to give consent to validate Aadhaar details with UIDAI in order to complete the process of linking.
5. If the details as per PAN and Aadhaar card are the same, the linking shall be done automatically and a pop-up message will inform you that your Aadhaar card has been successfully linked to your PAN card.
If your PAN is not registered at the e-filing portal, you just need to visit the e-filing portal www.incometaxindiaefiling.gov.in and select the option to ‘Link Aadhaar’ under ‘Quick Links’ section on the homepage. Enter your ‘Aadhaar number’, ‘Name as per Aadhaar’ and click on ‘Link Aadhaar’.