New Delhi, August 31: If you haven’t linked your Aadhaar number to Permanent Account Number (PAN), today is the last day. The linking of Aadhaar with PAN has been made mandatory by the government for filing income tax returns. However, the tax payers will have to link their PAN with Aadhaar today which is the stipulated deadline. There were reports that Income Tax department is unlikely to extend the deadline and the failure to link the two would result in non-processing of I-T Returns (ITR). The amended income tax rules have made quoting the 12-digit identification number or Aadhaar enrolment ID compulsory while applying for PAN. Aadhaar number is issued by the Unique Identification Authority of India (UIDAI) to a resident of India while PAN is a 10-digit alphanumeric number allotted by the I-T department to a person, firm or entity.
In the last week, UIDAI CEO Ajay Bhushan Pandey had said that the Supreme Court’s verdict on privacy has no bearing on the requirement quoting Aadhaar for availing government subsidies and welfare schemes. In July, the Income Tax department extended the last date for filing of income tax returns (ITRs) for the financial year 2016-17 from July 31, 2017 to August 5. It warned taxpayers that their IT returns will not be processed until the linking of both the identification proofs- the Aadhaar with PAN is done. The Supreme Court verdict holding privacy as a fundamental right has not stopped quoting of Aadhaar for various schemes as well as the filing of income tax returns.
The Section 139 AA (2) of the Income Tax Act says that every person having PAN as on July 1, 2017 and is eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities. Due to additional compliance requirements, this year, government has given relaxation to link PAN and Aadhaar till August 31, 2017.
Here’s how you can check if your Aadhaar is linked with PAN
  1. Log on into your account on the income tax department’s e-filing website incometaxindiaefiling.gov.in
  2. Go to ‘Profile Settings’ Tab and click on it to see if your Aadhaar number is linked there.
  3. In case not, here is how to link your Aadhaar with PAN card
Here’s what will happen if you don’t link it today:
  1. It has to be noted that linking of Aadhaar and PAN has been made mandatory by the government to file Income Tax returns. In case of failure to link the two, an individual’s ITR will not be processed as the return filed would become null and void.
  2. Not linking the two documents will be treated as you have not filed your returns for the financial year 2016-17.
  3. An individual will not be able to claim or carry forward losses such as capital loss, business losses, etc. The refunds shall not be granted in case ITR is not processed.
  4. If the Aadhaar and PAN are not linked, the income tax department may send you a notice to file your ITR under section 142(1). The assessing officer may levy a penalty of Rs 5,000 for not filing ITR on time.
  5. An individual may have to pay heavy interest as section 234 A, B, C will be applicable as the case may be, i.e., if the tax is payable.
The Central Board of Direct Taxes (CBDT) which is the policy-making body of the department has extended the last date for citizens to link their Aadhaar number with their Permanent Account Number to August 31. It said that for the purpose of e-filing of returns (by August 5), it would be sufficient to quote Aadhaar, on the e-filing website of the department.  The main aim to link Aadhaar number to PAN is to curb black money and streamline the entire tax filing process. Currently, the Unique Identification Authority of India has allotted these biometric-based documents to 115 crore Indians. As per reports by PTI, the government had told the Supreme Court that it is extending deadline for quoting Aadhaar in welfare schemes till 31 December which was earlier 30 September. As per reoports, a bench of Chief Justice Dipak Misra, Justice Amitava Roy and Justice A.M. Khanwilkar said the challenge to the constitutional validity of the Aadhaar scheme would be heard in the first week of November. Attorney General K.K. Venugopal told the court that the existing deadline of September 30 would be extended by three months.