A new section, Section 139AA, has been inserted in the Finance Act, 2017, as per which it is mandatory for persons eligible to obtain AADHAAR no. to quote AADHAAR no. in the PAN application form and in the income tax return, with effect from July 01, 2017.
Where PAN has already been allotted to any person who is eligible to obtain AADHAR as on July 01, 2017, such person shall intimate AADHAAR no. to such authority and in such form and manner, as may be prescribed, on or before a date to be notified by the Central Govt.
However, the Central Govt. may, by notification, exempt any person or any State from the above requirement.
The above amendment has been made to curb the practice of obtaining duplicate PANs or PANs fraudulently.
As per Section 3(1) of the Aadhaar (Targeted Delivery Of Financial And Other Subsidies, Benefits And Services) Act, 2016, every resident shall be entitled to obtain AADHAAR no. by submitting requisite information and undergoing enrolment process.
Further, as per Section 2(v) of the said Act, “resident“ means an individual who has resided in India for a period or periods amounting in all to 182 days or more in the 12 months immediately preceding the date of application for enrolment.
The CBDT on April 04, 2017 also issued a press release in this regard clarifying that such mandatory quoting of AADHAAR shall apply only to a person who is eligible to obtain AADHAAR number.
Accordingly, as per the present provision, foreign nationals residing in India for more than 182 days in 12 months, being eligible to obtain AADHAAR no., shall be required to obtain AADHAAR no. for the purposes of PAN and filing tax return in India effective July 01, 2017, unless exempted by way of notification.
Senior Manager-Tax Advisory
Contact number: +91 11 4710 2200