The CBDT – Central Board of Direct Taxes or Income Tax department stated that it is mandatory for all tax payers to link their Aadhaar card with their PAN card by August 31st otherwise the returns filed by them will be considered null and void which implies that it’ll be equivalent to no returns filed by you. Also this is the case irrespective of the fact whether the returns have been filed before August 5th or after.
Recently in a landmark judgment by the Supreme Court of India, it emphasized on the right to privacy being a fundamental right however has reserved its final judgment as of now and will pronounce it soon. Till then, what are the tax payers supposed to do?
However, the predicament here is that during an interview, the Finance Minister, Mr. Arun Jaitley informed the press that there is no such deadline for the linking of Aadhaar and PAN, apart from this “NO”, no other clarification has been received from the Govt.
Amidst all this, the recent landmark judgment of SC on one hand has given hope to some but on the other hand, CBDT says that due to the fact that SC’s final verdict on the issue has not been passed yet and the deadline is nearing, the failure of which will lead to the ITR filed by the tax payer null and void, thus the tax payers at least as of now have to link their PAN with Aadhaar by August 31st 2017 i.e. Tomorrow.
Few of the consequences that a tax payer may face in case of failure of Aadhaar-PAN Linkage are:
Your ITR will not be processed by the IT Deptt. i.e. you will be meted out the same treatment as a tax defaulter;
You might receive a notice from the IT Deptt. To file your ITR under Section 142(1) along with being subjected to a late fine of ₹5,000/-
You will be unable to claim any refunds as well as carry forward any capital losses, business losses, etc.
How Tax Payers can Link Aadhaar with PAN Card?
Step 1: Visit http://incometaxindiaefiling.gov.in/
Step 2: Click on Link Aadhaar
Step 3: Enter your PAN Card Number, Aadhaar Number, Name on Aadhaar, Enter Captcha and Click on Link Aadhaar
The process is quite simple and won’t take more than 2 minutes. The Income Tax department is keen on linking Aadhaar and PAN Card to control tax evasion due to multiple PAN cards. As per Section 139 AA (2) of the Income Tax Act every person that has a PAN Card as on July 1, 2017 and is eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities.