Quoting of Aadhar Number and Linking with PAN [ Section 139AA Read with Rule 114AAA ] - Income Tax - Ready Reckoner - Income Tax

Quoting of Aadhaar number Quoting of Aadhaar number Every person who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number - (i) in the application form for allotment of permanent account number; (ii) in the return of income. where the person does not possess the Aadhaar Number, the Enrolment ID of Aadhaar application form issued to him at the time of enrolment shall be quoted in the application for permanent account number or, as the case may be, in the return of income furnished by him. [ Section 139AA(1) ] Linking of PAN with Aadhaar Every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to such authority in such form and manner as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette. This process is known as linking of PAN with Aadhar . [ Section 139AA(2) read with Rule 114AAA (1) (2) ] Every person who has been allotted permanent account number on the basis of Enrolment ID of Aadhaar application form filed prior to the 1st day of October, 2024 , shall intimate his Aadhaar number to such authority in such form and manner, as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette. [ Section 139AA(2A) ] [ Inserted vide Finance (No. 2) Act, 2024 ] Consequences if a person has not linked his PAN with Aadhar - In case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be made inoperative after the date so notified in such manner as may be prescribed. A person who has failed to intimate the Aadhaar number in accordance with section 139AA of the Income-tax Act, 1961 read with rule 114AAA shall face the following consequences as a result of his PAN becoming inoperative: (i) refund of any amount of tax or part thereof, due under the provisions of the Act shall not be made; (ii) interest shall not be payable on such refund for the period, beginning with the date specified under rule 114AAA(4) and ending with the date on which it becomes operative; (iii) where tax is deductible under Chapter XVIIB in case of such person, such tax shall be deducted at higher rate, in accordance with provisions of section 206AA; (iv) where tax is collectible at source under Chapter XVII-BB in case of such person, such tax shall be collected at higher rate, in accordance with provisions of section 206CC. [ Rule 114AAA(3) ] These consequences shall take effect from 1 st July, 2023 and continue till the PAN becomes operative. A fee of ₹ 1,000/- pay under section 234H, continue to apply to make the PAN operative by intimating the Aadhaar number. [ Rule 114AAA(4) read with Circular No. 03 of 2023 28 th of March, 2023 ] The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the formats and standards along with the procedure for verifying the operational status of permanent account number under rule 114AAA (1) and (2). [ Rule 114AAA(5) ] When provisions of section 139AA not Applicable The provisions of this section shall not apply to such person or class or classes of persons or any State or part of any State, as may be notified by the Central Government in this behalf, in the Official Gazette. [ Section 139AA(3) ] The consequences of PAN becoming inoperative shall not be applicable to those persons who have been provided exemption from intimating Aadhaar number under the provisions of section 139AA(3) of the Act. As per CG Notification, provision of Sec 139AA not apply to an individual who does not possess the Aadhar number or Enrolment ID and is Residing in the states of J K, Meghalaya and Assam or a non-resident as per IT Act, 1961 or of the age of 80 years or more at any time during the PY or Not a citizen of India.