The Central Board of Direct Taxes (CBDT) on June 27 issued its standard Gazetted notification (Extraordinary), saying that those applying for PAN from July 1 will have to mention his/her Aadhaar number.
This section (Section 139aa) had been inserted into the Income Tax Act through its Finance Act, 2017 and had become a legal hot potato till the Supreme Court decided that it will be necessary to use Aadhaar for those having PAN. However, there is a temporary exemption for those who don’t have PAN. However, since ITR will need PAN which should be connected to Adhaar, this will ultimately become essential, say media reports.
The Supreme Court Constitution bench will further look into the overall issue. Meanwhile, this notification has come and could create a bit of confusion.
The gazetted notification by the CBDT says: “Every person who has been allotted permanent account number as on the 1st day of July, 2017 and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the Principal Director General of Income-tax (Systems) or Director- General of Income-tax (Systems) or the person authorised by the said authorities.”
The notification further says: “The Principal Director General of Income-tax (Systems) or Director- General of Income-tax (Systems) shall specify the formats and standards along with procedure, for the verification of documents filed with the application under sub-rule (4) or intimation of Aadhaar number in sub-rule (5), for ensuring secure capture and transmission of data in such format and standards and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing of the application forms for allotment of permanent account number and intimation of Aadhaar number.”
—India Legal Bureau