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 31st 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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Take a look at Section 139AA of the Income Tax Act, which came into effect on July 1st 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?
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:
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?
It’s not compulsory to link Aadhaar with PAN if you file ITR before July 31st 2018. You have time to link Aadhaar with PAN till March 31st 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).
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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