Is it Mandatory to Link Aadhaar When Filing ITR?

 

The Aadhaar Card is a unique 12-digit identification number, given to each citizen of India. It’s compulsory to link Aadhaar with Bank Account, Aadhaar with Mobile Number, Aadhaar with PAN, Aadhaar with Life Insurance Plan and Aadhaar with Mutual Funds.

Aadhaar is a very essential part of KYC (Know Your Client). Linking Aadhaar to PAN is a topic which has been heavily discussed. Linking Aadhaar to PAN is a subject of litigations and many extensions.

CBDT (Central Board of Direct Taxes) has extended the last date to link Aadhaar with PAN to March 31^st 2019. Does this mean you can avoid quoting the Aadhaar Number in ITR? Unfortunately the answer is No. Let’s find out why?

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Is It Mandatory To Link Aadhaar When Filing ITR?

 

How To Link Aadhaar With PAN?

 

Take a look at Section 139AA of the Income Tax Act, which came into effect on July 1^st 2017. This Section requires every citizen who is eligible to obtain Aadhaar to quote either the Aadhaar Number or the Enrollment ID while filing ITR or applying for PAN.

What does this mean?

• You have to link Aadhaar with PAN and the last date to do so is March 31^st 2019.
• It’s compulsory to quote Aadhaar Number while filing ITR.

 

1. Compulsory to quote Aadhaar in ITR?

 

If you are eligible for Aadhaar, it’s compulsory to quote the Aadhaar Number or the Aadhaar Enrollment ID Number, in the ITR Form, when filing ITR. This holds true even when you apply for the allotment of PAN.

Are there exemptions?

Yes, you enjoy exemptions from quoting Aadhaar Number or the Enrollment ID if:

• You reside in the States of Assam, J&K, and Meghalaya.
• You are an NRI as per the Income Tax Act.
• You are 80 years or older.
• You are not a citizen of India.

 

2. Does an NRI/Foreign Citizen who is residing in India have to link Aadhaar with PAN?

 

It’s not compulsory for an NRI or a foreign citizen who is residing in India to link PAN with Aadhaar. If your status is NRI, then you are allowed to leave the Aadhaar Number field blank, as there’s a special exemption for NRIs/Foreign Citizens from quoting Aadhaar Number in ITR.

What if you have become an NRI? Let’s say you got the Aadhaar when you were a resident of India. Now you are an NRI. You have the option to quote Aadhaar Number in the ITR and it would be wise to do so.

You can apply for the Aadhaar Card if you have stayed in India for 182 days or more in the 12 months, immediately before the date of application for enrollment.

 

SEE ALSO: How To File Exempt Income In ITR?

 

3. Is it compulsory to link Aadhaar with PAN?

 

It’s not compulsory to link Aadhaar with PAN if you file ITR before July 31^st 2018. You have time to link Aadhaar with PAN till March 31^st 2019. But, it’s compulsory to quote the Aadhaar Number or the Aadhaar Enrollment ID Number, in the ITR Form, when filing ITR.

If the Aadhaar Number has not been mentioned in the ITR, you get an error and the e-filing website will not accept your Income Tax Return (ITR).

 

4. How to link Aadhaar with PAN if there’s a minor mismatch in the name?

 

The IT Department used to allow the linking of Aadhaar with PAN, if there was a minor mismatch with names appearing in PAN and Aadhaar records. The IT Department used to verify the identity of taxpayers through an OTP (One Time Password), which would be sent to the registered mobile number with UIDAI.

This facility no longer exists. After 01-12-2017, the UIDAI has stopped the practice of verifying your identity with the OTP. You cannot link Aadhaar with PAN if there’s a mismatch in your name as per Aadhaar and PAN records. You/Taxpayers will have to correct either PAN or Aadhaar, if you want to link PAN with Aadhaar.

 

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