This is a very big and extremely important aspect of Aadhaar-PAN linking. Tax payers must know that if they don’t link their Aadhaar and PAN, the ITR will not be processed. Even if you have filed your ITR but have not linked Aadhaar with PAN, then ITR won’t be processed and hence you will not get any refund. If you want your ITR to be processed, Aadhaar-PAN linking is a must latest by 31st August. According to a notification on Income Tax website, “ITR will not be taken up for processing under section 143(1) of the Income Tax act until the PAN is linked to Aadhaar.” The deadline to link Aadhaar with PAN is 31st August, 2017.
How to link Aadhaar with PAN: https://incometaxindiaefiling.gov.in/e-Filing/Services/LinkAadhaarHome.html
Earlier, the Supreme Court had upheld the validity of an I-T Act provision making Aadhaar mandatory for allotment of PAN cards and ITR filing, but had put a partial stay on its implementation till a Constitution bench addressed the issue of right to privacy.
Pursuant to this, the Central Board of Direct Taxes (CBDT) had said the linking of Aadhaar and PAN will be a “must” for filing of income tax returns (ITR) and obtaining PAN from July 1.
While Aadhaar is a biometric authentication issued by the UIDAI, PAN is a 10-digit alphanumeric number allotted by the I-T department to individuals and entities.
On August 24, the government made it clear that linking of PAN with biometric identifier Aadhaar will continue as previously directed and so will quoting of the 12-digit ID number for availing various government subsidies.
“The Supreme Court verdict holding privacy as a fundamental right has in no way stopped quoting of Aadhaar for various schemes as well as filing of income tax returns,” UIDAI CEO Ajay Bhushan Pandey said. On the linking of Aadhaar with Permanent Account Number (PAN) allotted to income tax payers, he said such a linkage has been mandated by an amendment to the Income Tax Act. “The linking will continue under that Act and law. There is no change in that,” he said.
“The Aadhaar Act – which entails its quoting for services ranging from getting subsidised cooking gas to opening bank account and obtaining a new phone number – had been drafted keeping in mind privacy as a fundamental right,” Pandey added.