Supreme Court makes Aadhaar-PAN Linking mandatory for ITR Filing
Central Board of Direct Taxes (CBDT) had announced last year that the deadline for linkage of PAN card with Aadhaar UIN, for the purpose of income tax return filing is extended till 31st March 2019.
In this regard, the Supreme Court has confirmed on 6th February 2019 that the linkage of PAN with the Aadhaar UIN is now mandatory for the purpose of ITR filing. The apex court has supported the Section 139AA of the Income Tax Act, 1961 and has made Aadhaar-PAN linking mandatory for ITR Filing.
#1. What does section 139AA of Income Tax Act signify?
The section 139AA of the Income Tax Act, 1961 states:
An individual eligible to get an Aadhaar number shall quote his Aadhaar number in:-
- Application form for obtaining the PAN, (i.e. PAN application)
- The income tax return.
#2. What is the significance of Aadhaar?
Aadhaar Unique Identification Number is a medium to access a large number of social security benefits and government schemes.
- Importantly, a number of financial benefits can be availed by the citizens only if their 12 digit Aadhaar Number has been linked with PAN card and his bank account.
- The most important purpose of having Aadhaar UIN is linking it with PAN for fast and accurate income tax return filing.
- And now, interlinking PAN with Aadhaar UIN is mandatory for ITR Filing for all citizens.
#3. What is the reason for linking PAN Aadhaar for ITR Filing?
The main purpose for the linkage of PAN with Aadhaar before income tax return filing is to seed financial details of a taxpayer into the income tax returns.
Let us understand how it works-
- Everyone knows that banks require an Aadhaar number for opening a new bank account.
- Now, the details of the bank account of the taxpayer are already linked with his Aadhaar.
- This facilitates fast reconciliation of the financial information furnished by the taxpayer for ITR filing.
- Moreover, this assures accuracy and speediness while income tax return filing.
- Besides, this will avoid chances of delay in ITR filing and will save the penalty for late filing.
So now, you can save ITR filing late fee by interlinking PAN with Aadhaar number for the purpose of income tax return filing.
If you need any assistance in Aadhaar-PAN linking, Income tax return filing, or PAN application feel free to contact our business advisor at 8881-069-069.
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