Link PAN with Aadhaar else PAN may become invalid

Link PAN with Aadhaar else PAN may become invalid 

Aadhar card has become an inevitable part of our life. Every document has to be linked with Aadhar card in order for it to be valid and usable. In the same case, it is now mandatory to link PAN card with Aadhar card else it will become invalid. Let us have look on the details of the same.

If a person doesn’t file income tax return but possess both PAN and Aadhaar then linking the two is obligatory otherwise your PAN will be become invalid from a date to be notified by the government, as per section 139AA of the Act.

The recent Supreme Court order provides temporary relief to those who may have PAN but do not have an Aadhaar and have not applied for one. It does not provide any relief to those who already have both PAN and Aadhaar.

Under the regime:

  • Even persons who are not required to file income tax returns due to income being below exclusion limit but own both PAN and Aadhaar are mandatorily required to link both by a date to be notified as per section 139AA.
  • If such persons do not link the two by the date to be notified then their PAN will become invalid as per Section 139AA of the Income Tax Act introduced in the last budget.
  • This means that a large number of people – senior citizens, students, entry-level workforce, housewives etc. who have PAN and Aadhaar both but don’t file returns will have to link the two numbers.
  • This can be done via the income tax department’s e-filing website.

You can learn more about the linking of PAN with Aadhar via our article for the same. Click here.

The effect of this judgment is as follows:

  1. From July 1, 2017, onwards every person eligible to obtain Aadhaar must quote their Aadhaar number or their Aadhaar Enrolment ID number for the filing of income tax returns as well as while applying for allotment of PAN.
  2. Everyone who has been allotted PAN as on July 1st, 2017 and who has an Aadhaar number, shall indicate his Aadhaar number to tax authorities for the purpose of linking PAN with Aadhaar.

What if you do not link your PAN card number with Aadhar card number?

  • If an individual does not link PAN and Aadhaar as commanded by section 139AA then that person’s PAN would become invalid.
  • If a person’s PAN becomes invalid they would face problems in all banking / financial transactions requiring PAN.
  • As per Section 139AA of the Income Tax Act, every person who has been allotted PAN as on July 1, 2017, and who is entitled to obtain Aadhaar Number shall intimate the same to the tax authorities before a date to be notified by the government.
  • On failure to do so, the PAN of those persons shall stand to be invalid and provisions of this Act shall apply as if the person does not hold a PAN.
  • The validity of this section was challenged in the Supreme Court on the grounds at it is violating the Article 19(1) (g) of the Constitution.
  • According, to a recent CBDT press release, the SC has upheld constitutional validity of the Section 139AA of the Income Tax Act.


So a partial relief by the Court has been given to those who do not have Aadhaar and who do not wish to obtain Aadhaar for the time being, that their PAN will not be canceled so that other consequences under the Income Tax Act for failing to quote PAN may not arise.

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