Aadhaar not mandatory for PAN in Assam, J&K
TNN | May 13, 2017, 07.03 AM IST
NEW DELHI: The government has exempted residents of Assam, Jammu & Kashmir, Meghalaya, nonresident Indians, foreigners or any citizen above 80 years of age from mandatory quoting of Aadhaar while filing income tax returns or to obtain a permanent account number (PAN).
A notification has been issued listing the categories that have been exempted from quoting Aadhaar. A related case challenging the mandatory use of Aadhaar for PAN or to file tax returns is currently pending in the Supreme Court, which has reserved order on a bunch of petitions challenging its constitutional validity.
The government had earlier this year made amendments in the Finance Act providing for mandatory quoting of Aadhaar or enrolment ID of the Aadhaar application form while-filing tax returns. A notification later made it mandatory to link PAN with Aadhaar.
From July 1, the government had also made Aadhaar mandatory for applying for a PAN. The income tax department has so far linked over 1.18 crore PANs with the Aadhaar database. The department has also launched a new online service on its official website to link Aadhaar with PAN.
The idea of linking PAN with Aadhaar is also to get rid of multiple PAN cards some people have obtained either in their name or on fictitious identities. A number of shell companies have been created with fictitious individuals or common people serving as directors in hundreds of shell entities engaged in money laundering activities.