Union government has proposed making Aadhaar mandatory for filing income tax returns and for obtaining Permanent Account Number (PAN) through proposed  amendments to the finance bill 2017.

The government on 21.03.2017 proposed making Aadhaar mandatory for filing of income-tax returns as well as for obtaining and retaining the PAN.

According to the amendments, from 1 July 2017, every taxpayer will have to quote Aadhaar while applying for a PAN and while filing income-tax returns. Further, existing PAN holders will have to disclose their Aadhaar numbers to the government by a date that will be specified later. Aadhaar enrolment number while filing ITR could also be accepted. In case of failure to intimate the Aadhaar number, the PAN allotted to the person shall be deemed invalid.

Vikas Vasal, Partner, Grant Thornton India LLP  said that “Mandating Aadhaar number vis-à-vis Permanent Account Number (PAN) is a step in line with government’s intent to bring in tax transparency and to create an audit trail for various transactions undertaken by a taxpayer. Linking of Aadhaar and PAN would throw open any discrepancies in the reported transactions and provide a ready database to the revenue authorities for necessary action.”

 The move is likely to roil activists who say the Aadhaar programme – the enrolment to a national database with biometric information such as fingerprints and iris scans – is meant to be voluntary, as declared by the SC in September last year.

The government’s move to link Aadhaar will help in finding tax evaders who have multiple PANs. Though the income-tax department has been seeding PAN with Aadhaar for the last few years, the pace of the linkage has not been very good.

The finance bill carries an unprecedented 40 amendments, according to PTI, and will also impact other laws such as RBI act and representation of people act. Political parties hit out at the tweaks, saying they were being done as ‘backdoor entry’.

The finance bill 2017 is expected to receive the Lok Sabha’s approval on Wednesday.

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37 responses to “Aadhaar to be mandatory for income tax returns and PAN”

  1. Vivek says:

    How do you link Aadhar card for HUF with the pan card of HUF as there is no separate Aadhar card for HUF ?

  2. S. Sundaresan says:

    My name is S. SUNDARESAN, S is the initials and stands for my father’s name.

    While issuing PAN card about 12 years ago, IT dept insisted on giving expansion of initials, Thus my PAN card starts with my father’s name followed by my name. However, in Aadhar card, my name is spelt as S. SUNDARESAN.

    When I tried to link my Aadhar no. in Income Tax website, it is not getting through. They want my aadhar card to be amended. How is this possible ? In the last 5 years, I have done lot of transactions using aadhar card with
    S. Sundaresan.

    In today,s newspaper I read many people are facing this problem. I suggest some professional bodies such CA ; ICWA ; Co, Secretaries should take up the issue with both deots. of Central


    M Ganapathi Kamath – beware of this Government which has levied for Non-renewal of driving licence in time.
    For the mistake of menials who issue various cards we thew people suffer.
    This Government which is bent upon penalizing honest citizens, and let people like Mallaya escape, may well come out with a fine, penaltu and imprisonment for the mistake in names in various documents – They won’t suggedt remedies !!!!!

    • M Ganapathi Kamath says:

      Under which rule either the Govt or IT authorities are directing any citizen as to how his name to should be read/ written . During olden days the initial record for any person is his name as appearing in the School records / school leaving certificate, which is carried on thereafter in each and every record including the employment record and bank accounts. Since the bank account is the basis for deciding undisclosed income etc, name as reported in Banks records shall be taken as the base document. If the IT authorities want the expanded form of each of the initials they can ask for it separately, in same format . This would have solved all the problems. Only God can help the poor citizen from the confusion / situation.

  4. Vinod kumar gupta says:


  5. Vinod kumar gupta says:

    My wife have pancard befor marŕiage with d/o after msrriage aadhar card with w/o how mantain in itr


    We the residents of ASSAM in northeast do not have Aadhar Cards till this date. Even not expected to be issued in near future.
    what will be the position of peoples of Assam for filing Income Tax Return.

  7. V D pathak says:

    I am Karta of HUF. I have been filing the ITRs. I am afraid if I could be issued the Adhar Card as a Marta.


    I may add that it appears that this Govt is in haste and without considering the consequences and giving due thaought to any issue keeps issuing orders. Example was Demonetisation which saw so many clarifications within 50 days and unkept promise of exchange of old notes in RBI between 1 Jan and 31 Mar
    An MD of a Company may have to quote his pesonal PAN in the ITRs of of the Company; the Company will have its own PAN. He may also be MD or CEO of various othe Companies which will have different PANs.
    When he links his Adhaar to his personal PAN and that of the Companies as Princpal Contact, won’t it be multiple PANs for the same Adhaar?
    What action will Govt take? Cance which PAN?

    • Manjit says:

      I agree with Mr. Gandhi and Mr. Kamath. Other than Individuals, Aadhar card cannot be issued. There are problems in the names in various documents. Therefore, the Government should address these issue before making Aadhar card mandatory for filing ITR and other purposes.
      The reasons extended by the Govt. is to curb black money. However if such problems are not addressed upfront, it will create more avenues for creation of black money. Unless the Govt. is ready to issue clarifications from time to time as issued after Demonetization where the Purpose has been shifted from black money to Digitization.

  9. Easwar Rao says:

    Only Mr.Nilekani, the author of Aadhar card can solve the problems posed. He should suitably advise the govt. to issue suitable instructions on they subject.

  10. M Ganapathi Kamath says:

    While appreciating the steps taken by the Govt, the linking from ADHAR to IT and Adhar to Mobile and also a day may come to link Adhar to Voter identity, the difficulties experienced in linking the same is manifold.
    1. IT authorities say first name and last name shall be Name and surname and the middle name shall be anything like that of the birth place or father’s name; but everything shall be in the expanded format. Eg my name in all school records, bank records etc Ganapathi Kamath M and in some places M Ganapathi Kamath. IT authorities have issued PAN in the name of GANAPATHI MIYYAR KAMATH. ( They insisted for expanded form “M”.
    2. ADHAR CARD as per BANK account statement is GANAPATHI KAMATH M.
    3. As per Mobile GANPATI KAMAT. ( See the spelling errors, when asked TATADOCOMO people say, they can’t change it , since they have already issued the SIM card)
    4.IT people say it is as per their internal guideline.
    5 According to me the best option to the GOVT is to incorporate PAN, VOTER ID, MOBILE No etc.
    5. Can anyone assist me to link Adhar with PAN in view of discrepancies in name as referred above

  11. YASH says:

    If my wife is having PAN Card in her before marriage name and AADhaar card in her after marriage name both name are different. Then how to link AADHAAR to a ITR filing. As currently she is filing return with her PAN name only.

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