NEW DELHI: The BJP government is planning to make permanent address proof, Aaadhar cards or PAN cards compulsory from July 1 for people to fill the income tax returns.
After the Supreme Court upheld the law, Section 139AA of the Income Tax Act, the order was issued by the government. The act made it compulsory that the people must possess Aadhaar cards to file I-T returns. It also states that the linking of the UID must be done with PAN cards.
“Those who do not have an Aadhaar will have to apply for one in the next 20 days if returns are to be filed after July 1. Those who wish to file the returns or apply for PAN before the deadline can do without Aadhaar, for the time being,” an officer added.
However, in view of the court managing, the legislature has, until further notice, kept the connecting of PAN cards with Aadhaar on the assessment division site willful. The Central Board of Direct Taxes (CBDT), the arrangement making arm of the duty office, said the peak court had just given “incomplete help” to the individuals who don’t yet have an Aadhaar or an Aadhaar enrolment ID, and the taxman, subsequently, “won’t scratch off” the PAN of such people.
Cancelation of PAN will have a few ramifications, including making financial balances, common assets and protection strategies, rebellious with know-your-client (KYC) standards. Odds are that most PAN holders would have Aadhaar, which has a base of 115 crore Indians.
While there are 29 crore PAN holders, just around 4.5 crore record salary government forms. Most Indians record their profits by the July 31 due date, in spite of the fact that they have the alternative to document returns without paying any punishment till the finish of the year. The administration is expecting a spurt in filings this year on the back of demonetisation and different strides started to get serious about dark cash. The CBDT portrayed the SC’s Friday judgment as “point of interest”.