Q. With effective from July 1, 2017, when applying for a Permanent Account Number (PAN), or filing Income Tax returns, one has to quote their:
A. Bank account number
B. Mobile number
C. Aadhaar number
D. EPIC number
With effective from July 1, 2017, when applying for a Permanent Account Number (PAN), or filing Income Tax returns, one has to quote their Aadhaar number
“Aadhaar mandatory for PAN and Income Tax” was one of the 41 amendments in Finance Bill 2017 which has been passed Lok Sabha on 22 March.
It has now been mandatory for every person to quote their Aadhaar number after July 1, 2017, when: (i) applying for a Permanent Account Number (PAN), or (ii) filing their Income Tax returns.
In case a person does not have an Aadhaar, he will be required to quote their Aadhaar enrolment number, indicating that an application to obtain Aadhaar has been filed.
Every person holding a PAN on July 1, 2017, and who is eligible to hold an Aadhaar, will be required to provide the authorities his Aadhaar number, by a date and in a manner notified by the central government. A failure to provide this number would result in the PAN number being invalidated, and the person would be treated at par with anyone who has not applied for a PAN.
The government may exempt persons from this provision through a notification.
Finance Minister explained in the parliament that linking of Aadhaar with PAN was necessary as people have multiple PAN cards and are using it as a tool for tax evasion. He also pointed out that Aadhaar has biometric details so its chances of misuse would be minimal.
- Aadhaar mandatory for filing Income Tax returns to avoid tax evasion: Arun Jaitley, 22nd March 2017, newindianexpress.com
- Proposed amendments to the Finance Bill, 2017, prsindia.org