The Income Tax department started accepting returns without linking PAN with Aadhaar Number upto 5 lakhs.
This is due to people are facing problems with linking aadhaar with PAN because of mismatch of Name, Date of Birth, Gender etc.
The Finance Act, 2017 inserted Section 139AA to the Income Tax Act mandating quoting of Aadhaar or enrolment ID of Aadhaar application form for filing of income tax returns and making application for allotment of PAN (Permanent Account Number) with effect from July 1 2017.
Non-compliance with the above provision would render the PAN of the defaulting individual invalid, attracting penalty proceedings under the Income Tax Rules.
Petitions challenging the above provision on various grounds are pending before the Supreme Court for final disposal.
Considering the deadline to file income tax return which is going to expire on 31st July, now the department is accepting returns where aadhaar is not linked with PAN. However, the aadhaar number must be mentioned in the return.
Also there are reports that the Government may extend the due date for fining IT returns. However, no notification or circular has been issued by the Government confirming the same.
