After a lot of rigorous discussion, the Aadhar PAN card Linking Deadline has been extended up to the March 31, 2019. Initially it has been up to June 30, 2018. It has been observed that there is quite a lot of ambiguity surrounding the role of the Aadhar when it comes to the filing of the return, mostly in the decision of the Supreme Court. They ruled out that a PAN card would have to continue in order to stay valid even though the Aadhar has not been obtained and connected with PAN. Hopefully, at the end of this article, some clarifications regarding this matter would come.
Making Quotes of the Aadhar in the Return of the Income
The following regulations have been made mandatory in the statute books of the Finance Act 2017 where the insertion of Section 139AA has been made.
- All the people who are “eligible to obtain an Aadhar” has to quote the number of their Aadhar in the application form of PAN. They also have to include the return of the income and all these takes action right from July 1, 2017
- Quotation of the Aadhar enrollment number has to be quoted in return of the income for those who previously did not own the number of their Aadhar
- The tax authorities must be notified about the Aadhar number by making a link between the Aadhar and the PAN after the ownership of the Aadhar number. This is applicable to all the people who are given the PAN within July 1, 2017 and therefore is eligible to get the Aadhar number.
- Failure regarding the system to intimate the Aadhar number will lead to the PAN being considered dismissed or invalid.
The Ruling Regarding the Aadhar PAN link up from the Supreme Court
- There raised some questions regarding the constitutional validity of the section of 139AA in front of the Honorable SC, Supreme Court
- Except for the provision of a relief, partial in nature, the Supreme Court retained the validity of the section in its judgment.
- The partial relief was in accordance with the failure regarding the system to intimate the Aadhar number will lead to the PAN being considered dismissed or invalid.
- Supreme Court, further announced that the not obtaining any Aadhar number may not lead to the invalidity of the PAN
- Correspondingly, the provisions under the section of 139AA with respect to making quotations about Aadhar or the enrollment number of Aadhar
- All these are to be done in the income return or making the linkup between the Aadhar and the PAN
References: “Press Release dated 10 June 2017 (pursuant to the SC decision)”
Eligibility Regarding Aadhar
Making quotations regarding Aadhar and its enrollment has been made mandatory. However, this mandatory rule is only applicable on those who are eligible and fit to avail the Aadhar number. It is known from the Aadhar Act, 2016, a person who has qualified and proofed to a resident can apply to obtain the Aadhar number. Below, there is a list pointing out the qualities of eligibility to obtain the enrollment number.
- The person must be residing in India for a collective time period of 182 days or more than that in the previous 12 months, which is 1 year, right from the preceding date of making the enrollment application
- The person has to proof that is a resident according to the Aadhar Act of 2016
This means that a person who cannot proof that he is a resident in accordance with the Aadhar Act of 2016, do not have to make a quote of his number from Aadhaar under the section 139AA. In this case, the status of the residentship has to be more in accordance with the Aadhar Act instead of that of the Income Tax Act of 1961. This is done so because there is a possibility of the tax payer qualifying to become a resident under the regulations of the Income Tax, whereby, the same person may not be considered a resident according to the new Aadhar Act. Hence, in cases like this, the benefit of making a quote in the income return will be bestowed on such tax payers.
Aadhar PAN card Linking Deadline
The Aadhar PAN card Linking Deadline has already been announced in the previous section. The last date for linking Aadhar with PAN has been set March 31, 2019 instead of June 30, 2018. This is a mandatory process with no scope of skipping under the aforementioned regulations. To sum the whole article up, if someone is considered a resident according to the Aadhar Act, he must make sure to get his enrollment number before he applies to file for the income tax returns because quotations are to be made and linked with the PAN.