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PAN though not linked will not be cancelled, but Aadhaar is a must to e-File ITR

Income Tax Department has clarified that people who are unable to link their Aadhaar and Permanent Account Number(PAN) by July 1 will not face cancellation of their PANs at the same time Taxpayers without Aadhaar number or its enrolment ID will not be able to e-file Tax Returns.

A lot of confusion surrounds Aadhaar-PAN linking after government confirmed Aadhaar mandatory to obtain new PAN from July 1.

E-Filing of ITR is mandatory for all individuals except whose income falls below Rs. 5 lakh per annum and those who are above 80 years of age.

IT department has so far linked over 2.16 crore Aadhaar numbers with its PAN database

Aadhaar is issued by Unique identification Authority of India(UIDAI) to a resident of India, PAN is a ten-digit alphanumeric number allotted by I-T department to a person, firm or entity

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PANs not linked to Aadhar Will Become Void From July 1

Supreme Court is presently hearing petitions against government’s decision to make Aadhaar mandatory for procuring PAN and filing tax returns.

Early this month, govt. made Aadhaar number compulsory to file Income Tax Returns and to apply for new PAN as well. Further according to the Finance Act 2017, a PAN number can be rendered void if it is not linked with Aadhaar.

Today, during hearing the govt. clarified PANs not linked with Aadhaar will be invalidated only from July 1 and not from the date one applied for it.

Senior Advocate Datar said Aadhaar is every citizen’s right not duty, hence should not be made compulsory for govt. schemes.

The apex court also questioned members of parliament (MPs) asking why no one objected when govt. made Aadhaar mandatory for PAN.

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Now link Aadhaar to PAN online, despite name mismatch.

Aadhaar is now mandatory to file Income Tax returns and Finance Minister Arun Jaitley,  through his 2017 Budget provided to link it with PAN(Permanent Account Number) too,  to curb tax-evasion.

However, Aadhaar  many times come with short forms or spelling errors while PAN has full names – a big  hurdle when one attempts to link the two.  Now, Govt. has introduced a new solution to  tide over the  mismatch.

A scanned copy of ID  Proof  has to be uploaded on the Aadhaar website and one has to request for  name change based on the supporting proof, to create a match.  Linking Aadhaar to PAN thus smooths out easy.

However, for seeding to take place, the date of births have to be identical.

Now for those wishing to stay their names unchanged, the tax department  will soon come out with One-time Password(OTP) option on e-filing website of  IT department or NSDL.

“This option will help people who have given short forms of their name or in some cases spelling errors in the name provided in Aadhaar card “ a spokesperson said.