Aadhaar-PAN linking not must for these individuals

Mumbai: Even as the government has relaxed July 1 deadline for linking unique identity Aadhaar with key income tax filing document Permannet Account Number or PAN card, the Central Board of Direct Taxes or CBDT has indicated the mandatory ruling may come into force on a later date.

On May 11, CBDT had issued a notification under which it gave a classification of individuals or entities who would be put under compulsory category and who would be exempt from the exercise. Later, the Supreme Court had backed Section 139AA in a ruling in favour of the income tax department, according to a report in The Economic Times.

Based on the CBDT directive, following individuals or entities have been kept in the category exempt from compulsory linking of Aadhaar with PAN card.

-- Non-Resident Indians categorised and defined under India's Income Tax laws.

-- Persons who are not citizens of India.

-- If you are above 80 years at any time during the tax year.

-- Those who live in the north eastern states of Assam and Meghalaya and in Jammu and Kashmir.

Above mentioned individuals do not fall under the newly inserted section 139AA of the Income Tax Act. It means that they are not required to link their Aadhaar cards with PAN cards compulsorily.

Under the new section 139AA of the Income Tax Act, a person who has PAN card as on July 1, 2017 and who has Aadhaar card or has applied for Aadhaar number must intimate income tax authorities.

It may be noted that tax authorities will invalidate PAN cards of persons who fail to link their Aadhaar card with PAN card on a later deadline which CBDT will soon announce.