The revenue department has exempted residents of Assam, Jammu and Kashmir, Meghalaya, and citizens above 80 years from mandatory quoting of Aadhaar to obtain PAN cards and file tax returns. A notification in this regard has been issued by the government. This comes at a time when a case challenging mandatory use of Aadhaar for PAN (permanent account number) and filing income tax return (ITR) is pending in the Supreme Court. The apex court has reserved its verdict on a batch of pleas challenging the constitutional validity of a provision in the Income Tax Act to make Aadhaar mandatory.
The finance ministry notification gives the exemption to “an individual who does not possess the Aadhaar number or the enrolment ID” who is residing in Assam, Jammu and Kashmir and Meghalaya. The exemption is also for persons of 80 years or more, non-residents and non-citizens. The government, under the Finance Act 2017, has made it mandatory for taxpayers to quote Aadhaar or enrolment ID of the Aadhaar application form for filing tax returns.
Also, Aadhaar has been made mandatory for applying for PAN with effect from July 1, 2017. The department, till now, has linked over 1.18 crore Aadhaar with its PAN database. While Aadhaar is issued by the UIDAI to a resident of India, PAN is a ten-digit alphanumeric number issued in the form of a laminated card by the IT department to any person, firm or entity. Meanwhile, the department has launched a new e-facility to link a person’s Aadhaar with the PAN.