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Supreme Court makes Aadhaar-PAN linking Compulsory for ITR Filing


Central Board of Direct Taxes (CBDT) had declared a year ago that the due date for interlinking of PAN card with Aadhaar card, for the purpose of income tax return filing is reached out till 31st March 2019.

In such manner, the Supreme Court has affirmed on sixth February 2019 that the linkage of PAN with the Aadhaar UIN is presently obligatory with the end goal of ITR filing. The peak court has taken reference of the Section 139-AA of the Income Tax Act, 1961 and has made Aadhaar-PAN linking required for ITR Filing.

#1. What does section 139-AA of Income Tax Act mean?

The section 139-AA of the Income Tax Act, 1961 states:

  • An individual qualified to get an Aadhaar number will cite his Aadhaar number in:-
  • Application structure for getting the PAN, (for example Skillet application)
  • The income tax return filing.

#2. Why is the Aadhaar UIN number so important?

  • The Aadhaar Unique Identification Number is the only medium for an average Indian citizen to get direct access a huge number of standardized savings schemes as well as government schemes.
  • Critically, a number of financial advantages can be benefited by the residents just if their 12 digit Aadhaar Number has been connected with PAN card and his bank account.
  • The most critical reason for having a valid Aadhaar UIN is linking it with PAN for quick and exact income tax return filing.
  • Also, presently, interlinking PAN with Aadhaar UIN is compulsory for ITR Filing for all citizens.

#3. Why is the PAN number so important?

Permanent Account Number or simply PAN is the unique 10-digit alphanumeric number given to individuals, HUF, and business-firms living in India and abroad.

Here are the benefits of having a PAN Card –

  • You can easily open a bank account: All the banks and financial institutions always ask for a PAN card as a valid id proof for an opening a current or savings bank account.
  • Now there’s no hurdle to any transaction: After the 2010 amendment made to the Income Tax Act, 1961, the PAN card has been now made compulsory by the government for all types of companies.
  • You can easily Claim your IT Refunds and Rebates: Now you might be allowed to a refund in case your amount of TDS goes above the amount of income tax that you were actually supposed to pay. You can easily get the income tax refunds from IT department, only if the TDS deduction is linked to your PAN number and that you duly file income tax return.
  • You can easy Avail Loan from banks: Banks and Financial Institution usually provide any loan and credit facility only if you have valid PAN card.
  • You can easily Buy & sell property in India: If you want to purchase or sell your immovable property which is worth more than INR 10 lakhs, you need to furnish your PAN card details.

#4.What is the explanation behind linking PAN Aadhaar for ITR Filing?

The primary reason for the linking of PAN with Aadhaar before income tax return filing is to seed financial data of a taxpayer into the income tax returns.

We can easily understand how it works in a practical situation of income tax return filing.

  • Everybody realizes that banks require Aadhaar number for opening new bank account.
  • Presently, the subtleties of the bank account of the taxpayer are now connected with his Aadhaar.
  • This encourages quick compromise of the financial data outfitted by the taxpayer for ITR filing.
  • Also, this guarantees correctness and convenience while income tax return filing.
  • Plus, this will stay away from odds of deferral in ITR filing and will spare the punishment for late filing.

Presently, you can spare ITR filing late fees by interlinking PAN with Aadhaar number with the end goal of income tax return filing.

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