The government notified on Wednesday that all Permanent Account Number (PAN) card holders have to link the number with their 12-digit Aadhaar number from July 1. Further, the Aadhaar number or Aadhaar enrolment ID will have to be quoted while applying for PAN as well as for filing of income tax returns.
A new column to quote the Aadhaar number has been included in Form 49A which is used to apply for PAN. The notification amended the Income-tax Rules of 1962 to state that every person who has been allotted permanent account number (PAN) as on the 1st day of July, 2017 and who in accordance with the provisions is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the income tax authorities.
It has been mandatory to quote PAN, and recently Aadhaar, to open bank accounts and to conduct cash transactions beyond a threshold. In the Union Budget 2017-18, finance minister Arun Jaitley made it compulsory to quote Aadhaar in filing income tax returns as well linking PAN with Aadhaar to check tax evasion through use of multiple PAN cards.
The Supreme Court had earlier this month upheld the validity of an I-T Act provision making Aadhaar mandatory for allotment of PAN cards and for income tax return (ITR), but had put a partial 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, which will come into effect from July 1, 2017.
The department said PAN holders have 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.