PAN to Become Inoperative After March 31 If Not Linked With Aadhaar
PTI
Real journalism holds power accountable
Since 2015, The Wire has done just that.
But we can continue only with your support.
New Delhi: Permanent Account Number (PAN) will become inoperative if it is not linked with Aadhaar by March 31, 2020, the income tax department has said.
The deadline for linking PAN and Aadhaar has been extended several times and the current deadline ends on March 31, 2020.
Till January 27, 2020, over 30.75 crore PANs have already been linked to Aadhaar. However, 17.58 crore PANs are yet to be linked with the 12-digit biometric ID.
"Where a person, who has been allotted the permanent account number as on July 1, 2017, and is required to intimate his Aadhaar number under sub-section (2) of section 139AA, has failed to intimate the same on or before March 31, 2020, the permanent account number of such person shall become inoperative immediately after the said date for the purposes of furnishing, intimating or quoting under the Act," the Central Board of Direct Taxes (CBDT) said.
Through a notification, the CBDT amended Income Tax rules and inserted Rule 114AAA, stipulating the "manner of making permanent account number inoperative".
Also read: Exclusive: Official File Notings on NPR and Aadhaar Contradict Home Ministry Assurances
The notification further said that persons whose PANs become inoperative shall be liable for all the consequences under the I-T Act for not furnishing, intimating or quoting the permanent account number.
For those linking PAN with Aadhaar after March 31, 2020, the IT department said it shall "become operative from the date of intimation of Aadhaar number".
Section 139 AA (2) of the Income Tax Act says that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities.
The Supreme Court had in September 2018 declared Aadhaar as constitutionally valid and held that the biometric ID would remain mandatory for the filing of income tax returns and allotment of PAN cards.
Aadhaar is issued by the Unique Identification Authority of India, or UIDAI, to a resident of India and PAN is a 10-digit alphanumeric number allotted by the income tax department to a person, firm or entity.
This article went live on February fifteenth, two thousand twenty, at zero minutes past one in the afternoon.The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.