Rushing to link Aadhar-PAN? Here is some clarity on it – Five points

The CBDT has not yet set a deadline by which Aadhar and PAN must be linked, failing which the PAN will become invalid

Aaadhar Card (File Image for representational purpose)

Citizens of the country are an anxious lot, rushing to link their Aadhar number with their PAN (Permanent Account Number) after the Central Board of Direct Taxes (CBDT) recently issued a notification making it mandatory from July 1. But here’s something that offers respite: the CBDT has not yet set a deadline by which the linking has to be done.

What does it mean?

1. Those who have both Aadhar and PAN must get the two linked STARTING FROM July 1. But the CBDT has not yet notified the LAST DATE by which Aadhar and PAN should be linked
2. While the notification states that those who have a Permanent Account Number (PAN) as on July 1, 2017 must intimate their Aadhar number to “such authority” as prescribed, it also adds that the intimation of Aadhar must be done “on or before such date that the CBDT shall notify in the Official Gazette.”
3. The notification further says that if the Aadhar number is not intimated by such date, the PAN number will become invalid. But when this comes into effect is not stated.
4. To clarify, your PAN number will not become invalid by July 1 if you do not link your Aadhar; it will only become invalid by the date set by the CBDT, which it is yet to notify in the Official Gazette.
5. As for those who do not have Aadhar, a recent Supreme Court ruling partially stayed the mandatory linking of the unique identification number with PAN. As the Constitution Bench of the Supreme Court is yet to give its ruling on a petition contending that Aadhar infringes on the right to privacy, there is, as of now, no compulsion for one who does not possess Aadhar to apply for one for the purpose of linking it to PAN. This is only temporary relief.

Here is a copy of the Income Tax Act notification inserting a new section 139AA.