Aadhaar  now linked to PAN for IT returns but not mandatory

The bench of Justices AK Sikri and Ashok Bhushan on Friday ruled in their order that those with both Aadhaar and PAN cards should link the two to file income tax returns, as part of the government’s effort to reduce fake PAN cards. But it also said the government cannot force anyone without Aadhaar to get it for filing tax returns, until a constitution bench of the Supreme Court fully examines questions of privacy regarding India’s unique identity number project.

Earlier in the year, the government had passed last-minute amendments to its Finance Bill : it had made Aadhaar card compulsory for those filing Income Tax returns. The provision also said that those who file I-T returns without an Aadhaar-linked PAN card would have their PAN declared invalid. All this was annulled.

Thus Section 139AA of the Finance bill which featured these new provisions, has now been partially stayed by the Supreme court. The highest court will now hear the petitions that challenge the basic principle of curtailing citizens privacy by making Aadhaar number or Unique Identification number mandatory for all.