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The Supreme Court Ruling: Linking of Aadhar Card with PAN card is not Mandatory

Updated on: 23 Nov, 2023 01:22 AM

Yes, you read that correctly. Linking Aadhar Card with PAN card is now partially mandatory.

Friday, June 9, 2017. The Supreme Court of India, today gave a decision that linking Aadhar card with PAN card is not mandatory for people who don't have an Aadhar Card and those who have not yet applied for it.

However, people who already have an Aadhar card have to compulsorily link the same with PAN card and quote it in their Income Tax Returns.

Furthermore, July 1, 2017, onwards, everyone has to mandatorily quote Aadhaar number on applications for PAN and Income Tax Returns.

What was the position before this Decision?

Earlier this year, the Government of India introduced a new section 139AA in the Income Tax Act. This rule was made by the government to keep all the fraudsters in check.

According to the section, every person who wants to:

has to quote their Aadhar number or quote the Enrolment ID of Aadhar application form issued to them.

In addition to this, all the PAN card holders who already own a card have to intimate the same to the Income Tax Authority. You can link your Aadhaar Card with PAN Card at the Income Tax Department website or know how to do it from your mobile phone Here

However, every person who has a PAN on 1st July 2017 and is eligible to get an Aadhaar Card, have to intimate their Aadhaar Number to the Income Tax Department. If the Aadhar number is not intimated to the authority, their PAN card would be treated as invalid. In other words, the PAN card holders will be treated as if they don’t have a Permanent Account Number.

So, Is linking Aadhar Card with PAN Card mandatory?

As a Result of the above, if you who do not have an Aadhaar Card yet or still have not filed for one, then you are not required to link your PAN cards.

However, if you want to apply for PAN card, then quoting the Aadhaar number is mandatory. If you do not have an Aadhaar Card then, quote the Enrolment ID given on the Aadhar application form.

Also, The Supreme Court has decided that this section is still valid in law. So, the people who already have a PAN card will have to link the same with their Aadhar card and mention it in their Income Tax Return. For all returns filed after 30th June 2017, quoting Aadhaar number or the Enrolment ID will be mandatory.

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.