CBDT clarification for Aadhar PAN compulsion

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PRESS RELEASE New Delhi,10th June, 2017.


1.Honourable Supreme Court in its landmark judgement has upheld section 139AA of the Income Tax Act as constitutionally valid which required quoting of the Aadhaar number in applying for PAN as well as or filing of income tax returns.

2.The Court also held that the “Parliament was fully competent to enact Section 139AA of the Act and its authority to make this law was not diluted by the orders of this Court.”Therefore, no violation of the earlier Supreme Court orders were found in enacting the provision.

3.The Court has also held that section 139AA of the Act is not discriminatory nor it offends equality clause enshrined in Article 14 of the Constitution.

4.Section 139AA is also not violative of Article 19(1)(g) of the Constitution in so far as it mandates giving of Aadhaar number for applying PAN and in the income tax returns and linking PAN withAadhaar number.

5.Section 39AA(1) of the IncomeTax Act as introduced by the Finance Act, 017 provides for mandatory quoting of Aadhaar/Enrolment ID of adhaar application form, for filing of return of income and for making an application for allotment of PAN with effect from 1stJuly, 2017.

6.Section 139AA(2) of the Income Tax Act provides that every person who has been allotted PAN as on the 1stday of July, 2017, and who is eligible to obtain Aadhaar, shall intimate his Aadhaar on or before a date to be notified by the Central Government. The proviso to section 39AA(2) provides that in case of non-intimation of Aadhaar, the PAN allotted to the person shall be deemed to be invalid from a date to be notified by the Central Government.

7.The Supreme Court has upheld section 139AA(1) which mandatorily requires quoting of Aadhaar for new PAN applications as well as for filing of returns.