Is it mandatory to link Aadhaar number with PAN?

Ans. The Finance Act, 2017 had inserted a new Section 139AA in the Income-tax Act, 1961, requiring every person who is eligible to obtain Aadhaar to quote his Aadhaar number while applying for PAN or furnishing return of income with effect from July 1, 2017. If any person does not possess the Aadhaar Number but he had applied for the Aadhaar card then he can quote Enrolment ID of Aadhaar application Form in the ITR

Section 139AA further provides that every person who has been allotted PAN as on the 1^st day of July, 2017, and who is eligible to obtain Aadhaar number shall intimate his Aadhaar number on or before  31-03-2022 to the Income-tax Department. In case of failure to intimate the Aadhaar number, PAN allotted to the person shall be made inoperative after the date so notified.

The CBDT vide Notification No.17/2022 dated 29-03-2022 notified that all the consequences provided under the Income-tax Act for not furnishing, intimating or quoting PAN shall come into effect from 01-07-2023 if PAN becomes inoperative due to non-linking of it with Aadhaar.