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
    govt.

  3. GANDHI MOHAN BHARATI says:

    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:

    MY WIFE HAVE PAN CARD WITH FATHER NAME& AADHAR CARD HAVE WITH HUSBAND HOW MANTAIN ITR

  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

  6. SUSHIL KUMAR TAPARIA says:

    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.

  8. GANDHI MOHAN BHARATI says:

    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.
    NO ONE IS LISTENING.
    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.

  12. T Ajay Murari says:

    first they should make aadhaar mandatory for applying and retaining VOTER CARD. after that make mandatory for remaining.

  13. RC Gupta says:

    NRI is not having Aadhar card how he will file iT Return for 2017 without Aadhar

  14. M V S N PRASAD says:

    How to link aadhar with pan data base when name has initials in aadhar and fully expanded in pan database

  15. M V S N PRASAD says:

    How to link Aadhar with PAN when the name has initials in Aadhar and fully expanded in Pan database

  16. R VENKATARAMAN says:

    my pan has full name as mandated and my aadhaar has initialized name. Initialed name is necessary for LPG, ration card, even in bank accounts. aadhaar card has father’s name.

  17. DEEPAK DANG says:

    Refer querry 8: The same problem of change of name is done. My self is Deepak Kumar Dang in PAN while Deepak Dang in Aadhar card. Address is changed. Advocate asked for verification by Ist class Govt. officer with full name, no. & confirmation to know me personally.

  18. vishnu purohit says:

    Please advise as to how NRI who don’t have Aadhar card can file Income Tax return in India ?

    • G R Saha says:

      I agree. The provision needs amendment because NRIs do not have AADHAR numbers nor are they required to obtain it. Yet they file ITRs on their Indian Income in the preascribed forms. Will the FM consider making exceptions ?

  19. vishnu purohit says:

    As I am NRI Please advise as to how NRI who don’t have Aadhar card can file Income Tax return in India ?

  20. VASANT says:

    HOUSEWIFE HAVING INCOME FROM TAILORING JOB AND TTION INCOME WHICH ITR WILL FILE ( INCOME IS APRO.240000/- FOR F Y 15-16)

    • Bhargavi says:

      No need of filing of return for income upto taxable limit i.e250000 even if u want to file file in itr2 income from other sources

  21. GANDHI MOHAN BHARATI says:

    Also why ask too many Nos, like Passport, Bank Acxcounts, Aadhar etc., if they are independantly linked ? Can’ the software people link them automatically or is the Government so lazy that you have to tell them?
    This does not sound smart or efficiency of the Government.

  22. GANDHI MOHAN BHARATI says:

    What about Aadhar for HUF ? Is the Aadhar of the Karta to be mentioned or what ?
    What about Companies ?

  23. om parkash goyal says:

    Sir I am Om Parkash Goyal s/o sh Roshan Lal goyal.In my original pan & pan letter of 1997, fathers name mentioned correctly, however, afterwards, when I applied for HUF Pan, I was issued my individual pan in above NAME with Father Name wrongly showing as Roshan Lal GoUYAL instead of Correct word GOYAL. 2 .In the IT e filing website my HALF Add. is MISSING & only showing ADMN. Building Bathinda. Kindly Advise Corrective Action For 1 & 2 Above. Whether it will be counted as Double PAN but PAN No is Same pl. Reply thanks

  24. om parkash goyal says:

    Sir I am Om Parkash Goyal s/o sh Roshan Lal goyal.In my original pan & pan letter of 1997, fathers name mentioned correctly, however, afterwards, when I applied for HUF Pan, I was issued my individual pan in above NAME with Father Name wrongly showing as Roshan Lal GoUYAL instead of Correct word GOYAL. 2 .In the IT e filing website my HALF Add. is MISSING & only showing ADMN. Building Bathinda. Kindly Advise Corrective Action For 1 & 2 Above. Whether it will be counted as Double PAN but PAN No is Same pl

  25. C N Krishnan says:

    My full name as per PAN Card is Chelakode Narayanswamy Krishnan whereas the same on Aadhar is Chelakode Narayanaswamy Krishnan i.e. there is an additional alphabet ‘a’ after Narayan………swamy on account of which i have been finding it difficult to link my aadahr number to the PAN on the website of Incometax Department. Kindly guide me how to get the spelling corrected and the required documents, if any.

    • Chirag nakrani says:

      Dear sir,
      Update the Aadhar card as per the corrected name or if aadhar card is already corrected then apply for correction in Pan card details by filling online application for pan correction with nsdl site.

      Thank you.

  26. Sasi says:

    Just like getting multiple PAN cards, ration cards, voter id cards, driving licence, etc., it should not be a problem to get duplicate aadhar card. Unless the Govt has a mechanism of matching the biometrics, linking Aadhar with PAN to catch tax evaders will be a futile exercise.

  27. mohan says:

    with this move people who do not have aadhar like students and senior citizens will find it difficult to enroll because of far flung aadhar centres. a lots of aadhar centres should immediately be opened to facilitate this and to conserve time fo citizens dont waste our time because we have to work to pay you taxes

  28. Rajiv Gupta says:

    Please advise as to how NRI who don’t have
    Aadhar card can file Income Tax return in India ?

  29. Anil Agarwal says:

    Making Aadhaar mandatory for ITR will definitely reduce Tax evaders with multiple PAN.Yet another step in right direction to curb black money.

  30. Gopalakrishnan Nair says:

    How to link a PAN Card to AADhaar with a slight difference in name .

  31. Raj says:

    Well I would not have any issues linking My Aadhar to My PAN, My only concerns are Security issues.

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