Jun 30, 2017

Aadhaar-PAN linking: Your PAN card may not become invalid right away if it is not done by 30th June

The status of Aadhaar is the most confusing thing in India right now. While there are multiple notifications coming from the government making it mandatory for various services, the Supreme Court is hearing cases against the move and has been making observations or giving directives on the way ahead.
The government seems itself caught in a legal maze. So are the common people. At least that is what one can make out of the supreme confusion that is ruling over linking of PAN and Aadhaar.
Over the last 2 days there have been reports saying 30 June is the last day for linking both identity proofs. However, there are fresh reports saying 30 June is not the last date and the government is yet to announce a deadline.
In all this, the government has remained silent, without issuing any clarification.
However, let’s get one thing out of the way.
It is mandatory to link your Aadhaar card to your PAN card.
For those who do not have Aadhaar.
According to the Supreme Court, if you do not have an Aadhaar or do not wish to get an Aadhaar as of now, you don’t need to worry, at least for now. Your PAN will not be canceled in such a case. "Only 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 cancelled so that other consequences under the I-T Act for filing to quote PAN may not arise," the CBDT had said in a circular.
For those who have an Aadhaar and PAN, I recommend that you get the numbers linked as early as possible. If you read the latest government notification you will realise that Aadhaar-PAN linking will become mandatory from 1 July and not before 1 July.
What if you can’t make it by tonight? Your PAN will become invalid, but only eventually.
According to a report in The Economic Times: After July 1, the linking will become mandatory and the government may declare a date after which the PAN not linked to Aadhaar will become invalid. The government has not declared that date yet.
Fear that PAN will become invalid has forced many to visit the Income Tax website and link their cards. The website became accessible for several hours due to high traffic. Even tax and investment experts say that there is confusion over regarding the issue. The government should have in no uncertain terms explained the consequences of not linking.
One thing is for sure. Since the government has not declared the deadline, you still have time to get it done. If you have errors in your cards, we suggest you get them fixed quickly and get the cards linked.
Even if the PAN becomes invalid immediately, your life is not going to come to stand still. Of course, there will be some pain points. You will have difficulties to make some financial transactions, which require PAN, or even file returns.
However, for those who have Aadhaar, it is better to go ahead and link it with PAN. That makes all your dealings with the government easier

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