Question: Consider the following statements:
(1) Section 139AA of the Income Tax Act states that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities.
(2) The deadline to link PAN with Aadhaar will end on March 31, 2020.
Choose the correct one:
(a) Only (1)
(b) Only (2)
(c) Both (1) and (2)
(d) None of the above
Answer: (c)
Related facts:
- The Income Tax Department announced on February 15, 2020 announced that that the Permanent Account Number (PAN) will become inoperative if it is not linked with Aadhaar.
- The deadline to link PAN with Aadhaar will end on March 31, 2020.
- According to the Income Tax department, there are over 17.58 crore PAN cards that are yet to be linked with the 12-digit Aadhaar card.
- Those person who’s PANs will become inoperative will also have to face the consequences under the IT Act for not intimating their permanent account number.
- On the other hand, for those linking their permanent account number with Aadhaar after March 31, their PAN will become operative from the date of intimation of Aadhaar number.
- The Central Board of Direct Taxes (CBDT) amended Income Tax Rules and inserted a new rule 114AAA, which includes the manner of making PAN inoperative.
- The CBDT stated that a person, who has been allotted PAN as on July 1, 2017, has to intimate his Aadhaar number under sub-section (2) of section 139AA of the Income Tax Act.
- If the person fails to intimate the same on or before March 31, 2020, the PAN of such a person will become inoperative immediately.
Links:
https://www.businesstoday.in/current/economy-politics/around-175-crore-pan-to-become-inoperative-after-31-march-if-not-linked-with-aadhaar/story/396239.html
https://taxguru.in/income-tax/rule-114aaa-pan-become-inoperative-failure-furnish-aadhaar.html