Summary:-
- The Government will invalidate all PAN cards that are not linked to Aadhaar from September 1.
- Presently 180 million PAN cards are not linked to Aadhaar.
- To continue using the existing PAN cars, citizen will have to link them to Aadhaar.
- Those already holding an Aadhaar which is not linked to PAN will get a New PAN from the Income tax department.
How the Aadhaar-PAN linkage, proposed in Finance Bill, 2019 will be rolled out?
- Government is going to provide the flexibility to use Aadhar/PAN either.
- But Citizens have to activate them by linking them to Aadhar.
- If citizens do not link the two , the Income tax department will automatically generate a New PAN number electronically.
- Citizens can download the new PAN online and use in future interchangeably with Aadhaar.
- Intention of Government is clear that if you have not linked PAN card with Aadhaar even after repeated extensions, the question is whether those PAN cards are even genuine in the first place, therefore , they will block or invalidate those till the time they are linked with Aadhaar.
Insertion of sub-section (6B) in the Income Tax Act:-
- Now checking authenticity of PAN & Aadhar is on the receivers of documents.
- The memorandum explaining the above provision state that "Duty is also proposed to cast upon the person receiving any document relating to such transactions, through newly proposed sub-section 6B to ensure that PAN/Aadhar is duly quoted and authenticated.
Other information
- From 1st April, it was mandatory to quote as well as link Aadhaar number for filling income tax return.
- The Supreme Court has also said that the linkage of the two documents is mandatory for Income tax returns.
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