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Monday, July 3, 2017

Relax! You can still link your Aadhaar with PAN card - your PAN isn't invalid just yet

     You can still link your Aadhaar card and PAN cards online and via SMS.
With the 'deadline' for linking Aadhaar and PAN card expiring on June 30, taxpayers who missed linking the two documents are confused about what will happen now.It is important to note that PAN cards not linked to Aadhaar will not immediately become invalid. However, a holder of both the documents may face issues in filing taxes, while those having an Aadhaar and wanting to apply for a new PAN will have to furnish the Aadhaar details in the PAN application.
According to a Supreme Court ruling, a citizen having both Aadhaar and PAN has to mandatorily link the two.The government will also soon announce a date after which a PAN not linked to Aadhaar will be considered invalid.
Till then, users are free to log on to the income-tax website incometaxindiaefiling.gov.in and link their Aadhaar and PAN cards.
It must be noted that due to the rush of people trying to link the two documents, the website might be slow to load. You could also try the manual method.
Here's how you can link Aadhaar and PAN
Register on the income tax filing website.
> Once registered, log in and look for 'profile settings' on top of the page.
> Select "link Aadhaar". Add your personal details, matching it with details on your Aadhaar card.
> Click on 'Link now' and you will receive a pop-up message saying both the documents are linked.


> Ensure details on both cards are the same.
> You can also link the two via SMS
> For this, just send an SMS to 567678 or 56161 from the mobile number registered with your Aadhaar card.
The confusion
According to the Revenue Department, the income tax law provides that “in case of non-intimation of Aadhaar, the PAN allotted to the person shall be deemed to be invalid from a date to be notified by the Central Government.”
The government has made it compulsory for taxpayers to link existing Aadhaar numbers with PAN with effect from July 1. Without the linkage they will not be able to file Income Tax Returns (ITR) anymore. Even application for PAN would require Aadhaar number or enrollment ID from now onward.
June 30 was not the deadline for linking PAN and Aadhaar; instead it was the deadline for filing tax returns without using one’s Adhaar number.
“Till yesterday, you could file your returns without an Aadhaar card. Now you cannot,” said Arnav Pandya, a Certified Financial Planner.The Supreme Court bench headed by AK Sikri passed a judgment stating that the Section 139AA of the Income Tax Act is “necessitated on any such applications for PAN or return of income on or after July 01, 2017, which means from that date quoting of Aadhaar number for the aforesaid purposes becomes essential.”
What the Law says
The Finance Ministry introduced Section 139AA into the Income Tax Act of 1961 and made the 12-digit biometric identity system of Aadhaar mandatory for filing ITRs. It also directed to link PAN with Aadhaar to curb tax evasion through the use of multiple PAN cards.“More people will now file returns since the linking has been made mandatory,” said Pandya.
The binding factor for taxpayers would be the invalidation of their PAN cards if they do not acquire an Adhaar card and link the two. Not filing tax returns is a legal offence and the rate of filing has been really low among Indian taxpayers.Section 139AA(2) of the Income Tax Act mandates that every person having a PAN as on the July 1, 2017, and who is eligible to obtain Aadhaar, shall intimate his Aadhaar on or before a date to be notified by the Central Government. This date is yet to be declared.
The linking of the IDs is not only a must for the tax payers, but also for the people having incomes less than the taxable bracket. With this step, the government is also bringing in potential tax payers within the scope of accountability.
For people without Aadhaar
The SC has a relief window for those who do not have Aadhaar, or do not wish to acquire it yet.The apex court has granted a partial stay on invalidating PAN cards of non-Aadhaar holders for a while. The SC bench said it was going to wait till a resolution is reached on the debate regarding Aadhaar overstepping Article 21 of the Constitution, right to privacy and human dignity.
But there is no relief provision for those who already have Aadhaar and PAN cards.As many as 2.07 crore taxpayers have linked their Aadhaar with PAN as of June 28 while are over 25 crore PAN card holders in the country.
Aadhaar-PAN connection can be done by SMS or the I-T 

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