By September 1 PAN cards that are not linked to Aadhar will be invalidated by the government. At the moment, 180 out of the existing 400 million PAN cards are not linked to Aadhar.
To validate and continue using the existing PAN cards, citizens will have to link them to Aadhar. Or else, they will be permitted to use Aadhar instead for filing returns and while making other high-value transactions, specified under the Income Tax Act. Those who cite an Aadhar number, which is not already linked to a PAN number, for tax returns and other specified transactions after September 1, will get a fresh one from the Income Tax Department.
This is how the Aadhar-PAN linkage, proposed in the Finance Bill, 2019, will be rolled out.
The Budget fine print also reveals the amended I-T Act would put the onus on the person receiving any document relating to specified high-value transactions or tax returns, to ensure that the PAN or the Aadhar number are duly quoted, and as importantly “authenticated.”
“At present, about 220 million PAN cards are linked to Aadhar, and about 180 million are not. We are going to provide the flexibility to use either. But, PAN cards that are not so far linked to Aadhar will be first put in suspension. Citizens can activate them by linking them to Aadhar,” said sources in the finance ministry.