Linking the PAN Aadhaar last date has been extended to 31st December

Linking the PAN Aadhaar last date has been extended to 31st December

Linking the PAN-Aadhaar the last date has been extended to 31st December

The Ministry of Finance, recently in a notification made on 28th September 2019, announced that it had extended the deadline to link PAN with Aadhaar to 31st December 2019. Previously the deadline was 30th September 2019.

The deadline to link permanent account number (PAN) with Aadhaar was extended till December 31, an order of the Central Board of Direct Taxes (CBDT) stated currently. 
This extension shall come as a relief for those persons who still have not linked their PAN with their Aadhaar.

This is the 7th time that the government had extended the deadline for individuals in order to link their PAN with Aadhaar. It is now made compulsory to link the two unique IDs for income tax purposes. 

The Supreme Court, last year in Septemeber, had declared the Centre's flagship Aadhaar scheme as constitutionally valid and held that the biometric ID shall remain compulsory for the filing of I-T returns and the allotment of PAN.

As per section 139 AA (2) of the Income Tax Act, it states that every individual having PAN as on 1st July 2017, and eligible to get Aadhaar, should intimate his or her Aadhaar number to tax authorities.

The Aadhaar is issued through the Unique Identification Authority of India (UIDAI) towards a resident of India and PAN is basically a 10 digit alphanumeric number which is given and allocated by the Income Tax Department to a person, company or entity.

However, if an individual’s PAN is not linked with Aadhaar within the extended deadline, then as per current laws the individuals PAN would become inoperative. 
The Central Board of Direct Taxes (CBDT) had not notified the manner in which PAN shall become inoperative if not linked with Aadhaar by the deadline.

It is expected that if an individual’s PAN becomes inoperative it shall be treated as if the individual is not holding the PAN and the person would be unable to conduct financial transactions where quoting of PAN is compulsory.

The rule relating to the consequences of not linking PAN with Aadhaar has been revised in the Budget of July 2019. Before this amendment, if PAN was not linked with Aadhaar, then PAN shall have become invalid. It was going to be treated as if that person never had a PAN. The rule has been revised and the word 'invalid' was replaced with 'inoperative' in order to protect past transactions using PAN done by the PAN cardholders.

A person could link their PAN with Aadhaar either through sending an SMS, or by filing through the e-filing website, or manually through filling a specified form at a designated PAN Service center. In case an individual is already filing ITR (income tax return), it is possible that the individual’s PAN is already linked to Aadhaar.

eStartIndia is the professional tech-based online business and legal service providing a platform which helps the clients to simplify the procedures of all kinds of registration, implementation, tax concerns and any other legal compliances and services related to the business in India.


eStartIndia Team

Leave a Comment

Previous Comments

Related Blogs