In an order issued today, the Central Board of Direct Taxes (CBDT) has clarified that, PAN-Aadhaar linkage can be done till August 31st, 2017 and it’s not mandatory for Filing Income Tax Return this year.
The CBDT also extended the due date for filing returns of Income from 31st July 2017 to August 5th 2017 in cases of all taxpayers who are liable to file their Income Tax return by the said ‘due date’.
The extension is a welcome relief for a large number of tax payers struggling to meet the deadline in the face of various problems.
In view of the difficulties faced by taxpayers, date for filing of Income Tax Returns for FY 2016-17 has been extended to 5th August, 2017, the CBDT said in the order.
The CBDT also said that, “for the purpose of filing return, it shall be sufficient as of now to quote Aadhaar or Aadhaar enrolment Number. The actual linking of PAN with Aadhaar can be done subsequently, but any time before 31st August, 2017. However these returns shall not be processed under section 143(1) until the linkageof Aadhaar with PAN is completed”.
Earlier this year, the Government had inserted Section 139AA to the Income Tax Act requiring mandatory 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.
As per the provision, non-enrolment of Aadhaar by July 2017 would render the PAN of the defaulting individual invalid, attracting penalty proceedings under the Income Tax Rules.
The provision has been challenged before the Supreme Court through various petitions contending that the new provision “compelling” tax payers to link their Aadhar Card to PAN would amount to violation of right to privacy.
Disposing these petitions, a two-judge bench of the Supreme Court had upheld the validity of the provision since the primary purpose of introducing this provision was to take care of the problem of multiple PAN cards obtained in fictitious names.
The bench however, stayed the application of s. 139AA of the Income Tax Act till the pronouncement of verdict by the Constitution bench in matters relating to legality of government orderto link Aadhar Card for filing income tax returns and PAN Card.
It further refused to consider the privacy and human dignity aspects and limited the matter to Article 14 and 19 since the matter is pending before the constitution bench.
Following the judgment, the CBDT had issued a Notification clarifying that furnishing the details of aadhar is compulsory for filing income tax returns from 1st July 2017.
Read the full text of the Order below.
