From October 1, 2024, individuals will be required to quote their Aadhaar number instead of the Aadhaar Enrolment ID in their PAN applications and income tax returns. The change aims to prevent duplication and misuse of Permanent Account Numbers (PAN), as Aadhaar coverage has expanded significantly. Those allotted PAN using the Enrolment ID must update their Aadhaar number by a specified date.
Budget 2024: Discontinuation of the provisions allowing quoting of Aadhaar Enrolment ID in place of Aadhaar number
The existing provisions of section 139AA of the Act mandate, inter-alia, that every person who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number—
(i) in the application form for allotment of Permanent Account Number (PAN);
(ii) in the return of income.
2. Further, said section also provides that where the person does not possess the Aadhaar Number, the Enrolment ID of Aadhaar application form issued to him at the time of enrolment shall be quoted in the application for permanent account number or in the return of income furnished by him.
3. The said provisions allowing the quoting of Aadhaar Enrolment ID in application form for allotment of PAN or in the return of income, was introduced in 2017. Since then, as per data available in public domain, coverage of Aadhaar number has been increasing, and has encompassed majority of the population in India. Hence, it is imperative to discontinue the option of quoting of the Enrolment ID of Aadhaar application form, as any allotment of PAN against the Enrolment ID may lead to duplication and misuse of PAN.
4. Therefore, it is proposed that proviso to sub-section (1) of section 139AA shall not apply from the 1st day of October, 2024. It is further proposed that every person who has been allotted permanent account number on the basis of Enrolment ID of Aadhaar application form, shall intimate his Aadhaar number on or before a notified date.
5. This amendment will take effect from the 1st day of October, 2024.
[Clause 42]
Extract of Clause 42 of Finance Bill 2024
Clause 42 of the Bill seeks to insert sub-section (2A) in section 139AA of the Income-tax Act relating to quoting of Aadhaar number. Sub-section (2A) of the said section empowers the Board to provide by rules, the authority, form and manner in which every person who has been allotted permanent account number on the basis of enrolment ID of Aadhaar application form filed prior to 1st October, 2024, shall intimate his Aadhar number.
42. Amendment of section 139AA.
(a) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:––
“Provided further that nothing in the first proviso shall apply in respect of any application form for allotment of permanent account number or return of income furnished on or after the 1st day of October, 2024.”;
(b) after sub-section (2), the following sub-section shall be inserted, namely:––
“(2A) Every person who has been allotted permanent account number on the basis of Enrolment ID of Aadhaar application form filed prior to the 1st day of October, 2024, shall intimate his Aadhaar number to such authority in such form and manner, as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette.”.
