Aadhar not mandatory for PAN: SC | Fusion - WeRIndia

Earlier, the government stated that linking Aadhar card with PAN is mandatory to file income tax returns and the rule will be effective from this year itself.

It also announced that those who apply for a new PAN will also need to have to provide their Aadhar card details.

It also said that the PAN cards not linked to their Aadhar cards will be rejected after December 31, 2017.

But, the Apex Court stayed the order of the government yesterday till the constitution bench decides the matter.

So, for now Aadhar will not be mandatory for filing IT returns as well as applying for a new PAN.

However, those who have Aadhar card need to provide the details while filing their income tax returns.

And those who do not have an Aadhar card can file their returns as usual with their PAN.

Earlier in the Budget, a new Section was introduced through the Finance Act, 2017. As per the Section 139AA of the Income Tax Act, Aadhaar or enrolment ID of Aadhaar application form is mandatory to file Income Tax returns and also to apply for allotment of PAN with effect from July 1, 2017.

But, some petitioners challenged the Section stating that the central government is putting down the Apex Court’s 2015 order. As per the Order, the unique identification number is voluntary.

So, the petitioners contended that how it can be mandatory now, as Aadhar card is voluntary but not mandatory as per Supreme Court’s order.

There have been several questions on the potential data leakage with Aadhaar being linked to PAN and bank accounts.

In the beginning of this year, the Aadhaar details of MS Dhoni, a popular cricketer were leaked.

So, in this regard, the Apex Court asked the government to take proper steps before making a decision and make sure to the citizens that there would be no data leakage.

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