CA Sachin D. Jain

CA Sachin JainBRIEF:

The Government has mandated use of Aadhaar Number in most of the Subsidy Schemes where the benefit of Subsidy is directly transferred to beneficiary instead of the earlier practice of through Suppliers. This has resulted in plugging leakages in Subsidies, benefits of subsidy directly to those who are eligible, targeted delivery of subsidy and less burden of subsidy on Government Exchequer. To take the advantage of power of AADHAAR in curbing the malpractices related to the use of PAN, the Government has decided to compulsorily Link PAN to Aadhaar.

INTRODUCTION:

In order to curb the loopholes in using the Duplicate PAN Numbers, the Government has w.e.f. 1st July, 2017, mandated use of Aadhaar Number along with PAN. Now, if you do not have Aadhaar Linked to PAN, your PAN will be deemed to be invalid. Hence, from 1st July, 2017, PAN will go along with Aadhaar in order to continue it to be VALID. Government has been extending the due date for linking your Aadhaar and Pan time to time. Now the last date for linking is 31st March, 2021.

MAIN BODY:

Some of the common questions are answered below for the benefit of readers:

Q 1. WHO IS LIABLE TO QUOTE AADHAAR?

Every individual, who has resided in India for 182 days or more in the last 12 months, immediately preceding the date of application for Aadhaar, is liable to Link AADHAAR NUMBER TO PAN.

Q 2. WHERE THE AADHAAR TO BE QUOTED?

The Government via Finance Act, 2017, has introduced Section 139AA, wherein quoting of Aadhaar Number is made compulsory:

1) In Application Form for New PAN

2) In the Return of Income (ITR)

3) In the IncomeTax Efiling Account (subject to Government Notification)

Q 3. WHAT IS AADHAAR IS APPLIED FOR AND AADHAAR NUMBER IS NOT ALLOTTED?

If Aadhaar is applied for and Aadhhar Number is not allotted, Enrollment ID in the Slip of Application of Aadhaar Number shall be quoted.

Q 4. WHAT IF AADHAAR IS NOT LINKED TO PAN?

If the AADHAAR is not linked to PAN, the PAN Number will not be considered as Invalid. Further, the income Tax Act will apply to that person as if that person has not applied for PAN at all.

Q 5. WHAT IF PAN BECOMES INVALID?

If Aadhaar is not liked to PAN and PAN becomes Invalid, some illustrative lists of transactions, which are not allowed to be done, are as follows:

1) Buying any Motor vehicle (other than two wheelers)

2) Opening an account with any Bank / NBFC / Co-Operative Bank (other than Basic Saving Bank Account)

3) Applying for Debit / Credit Card

4) Opening a DEMAT Account

5) Payment of Hotel / Restaurant Bill exceeding Rs. 50,000

6) Payment for travel to Foreign Country / Foreign Currency exceeding Rs. 50,000

7) Buying Mutual Fund exceeding Rs. 50,000

8) Buying Debentures / Bonds exceeding Rs. 50,000

9) Deposits in cash with any bank / co-operative bank exceeding Rs. 50,000

10) Buying Life insurance Policy, with yearly premium exceeding Rs. 50,000

11) Sale / Purchase of unlisted Shares exceeding Rs. 1,00,000 per transaction

12) Sale / Purchase of Immovable Property exceeding Rs. 10 Lacs

13) Sale / Purchase of any Goods/ Services exceeding Rs. 2 Lacs per transaction

Hope you will comply with the good intention of Government in order to help it to curb mal practices related to the use of PAN and consequently, to curb the black money.

So lets gear up and link your PAN and Aadhaar before 31st March, 2021!!!

(Author can be reached at Mob: +91-9687559363 or on email [email protected])

Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru)

Author Bio

Qualification: CA in Practice
Company: Agarwal & Jain
Location: Surat, Gujarat, IN
Member Since: 28 Aug 2020 | Total Posts: 4
He is a qualified Chartered Accountant and member of ICAI. He is having experience of more than 12 years in core practice area as a Chartered Accountant. He is dealing with indirect taxation, direct taxation and insolvency related matters. View Full Profile

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100 Comments

  1. VIJAYAN says:

    Income Tax Department has simplified the procedure for linking PAN and AADHAR. I could link PAN and AADHAR. Mismatch in name is not a hurdle now for linking PAN and Aadhar.

  2. VIJAYAN says:

    We have no objection to comply with the govt’s intention of linking PAN with AADHAR, but we expect the agencies to come forward with solution to facilitate the easy linking of both documents. Most of the problems for linking these documents are due to lack coordination between various govt agencies for which common people cannot be punished. We are happy to provide copy of the PAN Card and Aadhar Card to any govt nominated agency. Let them verify and link both documents without changing details unless and until if there is any typographical error. There are many people unable to link these documents due to mismatch in name. PAN database shows full name. PAN Card and Aadhar card show name with initial (short name). If we want change the name on PAN card / Aadhar card we have to follow the legal formalities and keep changing the name everywhere. I request to concerned Govt. agencies to come forward with solution as early as possible failing which large number of PAN Cards will become invalid.

  3. P K Somarajan says:

    My name in Aadhaar and PAN does not match. Aadhaar has got initials but in PAN it is full name which include father’s name and house’s name. How can I link PAN with Aadhaar ??????

  4. Ashit biswas says:

    No one can understand the actual problem faced by the people of Assam. Till today the people of not got Aadhar Card. Govt. of Assam has not taken any step to issue Aadhar Card for the people of Assam. How CBDT issued the notification without thinking the people of Assam?

  5. Abhishek says:

    I have made PAN for my 9 year old kid. Should I have to link her PAN too with her Aadhaar. She is not having any income and not filing returns. Pls. guide. Also, If I mention my Aadhaar in ITR (manual filing), will it get linked ?

  6. Mukesh Shyamalbhai Solanki says:

    my PAN No & Adhar card number data are similar ,no difference in name father name & surname my adhar number I entered correct then also. my adhar number is not linked. why??????. what is system read to match pan & adhar details. name, number or anything else. please clear it.

  7. GANDHI MOHAN BHARATI says:

    I have bee studying the Finance Bill in depth. The amendment in section 139AA(2) reads –
    “Every person who has been allotted Permanent Account Number as on 1st day of July, 2017, and who is eligible to obtain Aaadhaar number, 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,
    Provided that in case of failure to intimate Aadhaar number the Permanent Account Number allotted shall be deemed to be invalid and other sections of the Act shall apply, as if the person had not applied for for allotment of permanent account number.”
    Therefore, I do NOT aagree with the author on his introduction
    ” In order to curb the loopholes in using the Duplicate PAN Numbers, the Government has w.e.f. 1st July, 2017, mandated use of Aadhaar Number along with PAN. Now, if you do not have Aadhaar Linked to PAN, your PAN will be deemed to be invalid. Hence, from 1st July, 2017, PAN will go along with Aadhaar in order to continue it to be VALID”.
    The authority, form, manner and date are yet to be notified by the Government. One need NOT be afraid of 01 Juy 2017 as the last date.

  8. VIJAYAN says:

    I am not able link PAN & AADHAR due to mismatch in name If income tax authorities can allow to print short name (name with initial) on PAN card they should modify the portal accepting the same to link with aadhar card if the names on both cards are matching. For south Indians there is no supporting document to show full name to correct it on aadhar card. Even if UIDAI allows to correct the name on Aadhar card to full name based on PAN Data, again we are in trouble as we have to change to full name in Bank account , Election Card, Insurance Documents, Property documents, Vehicle documents, Electricity bill , water bill & gas connection etc. Bank account is already linked with aadhar for many. Hence it is requested to both income tax authorities and UIDAI that they may use separate method in coordination to allow to link these documents without changing name for such type of cases.

  9. vijayan varma says:

    Iam a senior citizen and would like to know whether there are offices where we can physically take the pan card and adhar card and get the necessary corrections made on presentation of relevant documents.what is the course of action for people like pios who have pan card but no adhar card as adhar cards are for indian citizens only and not for foreign citizens

  10. GANDHI MOHAN BHARATI says:

    After all Aadhaar is a unique Number, No person can get a second Aadhar. He can GET ONLY ONE AADHAAR NUMBER.
    Why shouild the Government make such a fuss on matching Names ?
    Let anyone link one PAN with Aadhaar, irrespective of name. If the system is in place that once an Aadhaar Number is linked to a PAN, no other PAN can be linked to the same Aadhaar.
    The risk is that miscreants may use some other person’s Aadhaar with someone else’s PAN and the original Aadhaar and PAN owner may find himself in dire problems.
    Multi factor authentication through OTP, PIN through email and some more strict checks may be needed.
    Howevever, I agree that it is easier and cheaaper to correct the Aadhaar exactly equal to PAN. It may be done on line or even through any browsing centre.
    I have suggested it to many.
    But who is the Authority who has been notified by the Government to whom such PA-Aadhaar linking is to be reported and the formast in which to be reported and the date by which it is to be reported as per the Finance Vill ?

  11. SUSHIL KUMAR TAPARIA says:

    Our query is that till now In Assam there is no AADHAR Card issued. It is not known when it will be issued.
    What the peoples of Assam can do for linking PAN with AADHAR…???

  12. K.K.CHANDRABOS says:

    Hi I took Pancard from kerala and Aadhar card from TN (Chennai ) but there is a spelling mistake in income tax record how to correct the same

    Pancard showing >>k k chandrabos
    in IT site it showing>> k.k,.chandrasos
    addharcard >> (only) chandraabos

  13. Pravesh Kumar Jain says:

    What about people leaving in Assam, where Aadhar is not allowed to be issued officially. There is no agency authorised by State Government for issuing Aadhar.

  14. Rajendran says:

    It is true that in 99 percent cases the name in aadhaar and pan will not match. The cbdt can simply ssay that if DOB matches it can be linked.If a person has still any mismatch he has to alter either pan or aadhaar.

  15. manikanthan nagharajan says:

    As per clause 6 of part 1 of Schedule 1 to the chartered accountants act 1949, you are not supposed to advertise your firm name. You are guilty of Prosfessional Misconduct

  16. GRAMACHANDRAN says:

    I have made representations to CBDT and through TAX FORUMS regarding the need for linking separate fields in AADHAR with PAN. The CBDT is adamant in notb listening to the difficulties. PAN is having three fields FIRST NAME M IDDLE NAME LAST NAME. On the other hand AADHAR is having different fields -NAME OF THE PERSON FATHER’S NAME. How can both these match since in ADHAR THERE IS ONLY NAME AND FATHER’S NAME and it does not bother about FIRST NAME MIDDLE NAME LAST NAME. Most of the other entities have been linked with AADHAR LIKE BANKS GAS SUBSIDY. Unless CBDT understands the reality and give up its admancy this will continue

  17. GANDHI MOHAN BHARATI says:

    What about the majority of persons who have Aadhaar but NOT liable for Income Tax.
    The Goverment has only said that Aadhaar Number with PAN is to be intimated to the authority to be notified by a particular date to be notified by the Government.
    Who is the authority ?
    Is it some one else other than efiling eweb site ?
    Are ITR efil;ers also have to intimate such authority as and when notified ?
    Are people who obtain PAN showing Aadhaar have to again intimate such authrity.
    Your article is not comlete
    This Government confuses everything/

  18. SANJAY KORDE says:

    SIR,
    THERE ARE DIFFICULTIES WITH PAN NAME DETAILS & ADHAR NAME DETAILS,
    IN PAN NO SURNAME IS FIRST, SECOND FATHER NAME & THIRD NAME OF THE PERSON, BUT IN ADHAR FIRST NAME OF THE PERSON,SECOND FATHER NAME & THEN SURNAME.
    FIRST GOVERNMENT SHOULD DEFINE SERIAL NO OF NAME FATHER NAME & THEN SURNAME WHICH DATA SAYS MISMATCH FOR THE SAME PERSON,

  19. N.UDAYASIMHA says:

    The Main problem in linking Aadhar to PAN is
    01.Name in both are not same
    02.Address has been changed
    The IT dept should immediately address these issues immediately, before making mandatory.
    Already there is a News item, where in PAN initial has been expnaded and in Aadhar only initial is available.
    N.UDAYASIMHA
    Bangalore

  20. Anne says:

    How about for those trying to link Aadhaar to PAN but always unsuccessful(mismatched as per computer but never inform which exact detail is not matching)

  21. B.SEKAR says:

    Dear dir,

    Thanks for you kind note. I am aged 63 years. I am having pan card and I am a tax assessee. How can I include the aadhar card number in pan card. Is there any form and formalities for the same. kindly send me a mail as a reply.

    Thanking you.
    B,SEKAR
    9445145480

  22. SHOBHAN SEN says:

    What would be the status of those who reside in a state like that in Assam, where Adhaar was not issued to them?
    I am a resident of Assam and that is why I am scared of this news that PAN without Adhaar is invalid.

  23. ramji yahoo says:

    but what are all the solutioins, in 90% cases the name as per PAN AND AADHAR do not match, the author did not write about the solutions for that

  24. Radha C says:

    How will this apply to NRIs? I am residing in the USA but have bank deposits in India which are associated with my PAN number. I do not have an Aadhar card and will not be able to get one before the deadline.

  25. Edward Borges says:

    As per Aadhaar application and your response in Q 1 (linking aadhaar to PAN) is valid only for resident Indians, (182 days in India) so what about NRIs? If NRIs cannot link Aadhaar to PAN and PAN becomes invalid NRIs cannot conduct the 13 transactions in Q5 while in India?

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