The central government of India has announced an important notification towards the Goods and Service Tax which started from July 1. It is must to link Aadhaar number with the Permanent Account Number (PAN) of taxpayers with effect from July 1. Also, the Income Tax department has made an easy way to link the Aadhaar number with the PAN through SMS recently.
By the request of Central, some of the new rules are made and changed to improve the income tax. In that, Aadhaar a must at the time of application of PAN. The Finance Minister Arun Jaitley through an amendment to tax proposals in the Finance Bill for 2017-18 had made Aadhaar mandatory for filing income tax returns and provided for linking of PAN with Aadhaar to check tax evasion through the use of multiple PAN cards.
Also, the revenue department said that “Every person who has been allotted PAN as on July 1, 2017, and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the principal director general of income tax (systems) or DGIT (systems)”, reported PTI.
This new rules will be opened to the public from July 1, Saturday. And the revenue department said while amending Rule 114 of the I-T Act, which deals with the application for allotment of PAN.
Besides, it entrusted principal DGIT (systems) or DGIT (systems) with specifying the formats and standards along with procedure for verification of documents filed with PAN application or intimation of Aadhaar number.
According to the report, around 2.07 crore taxpayers have already linked their Aadhaar number with their PAN. The difference between the strength of Aadhaar and PAN holders is huge in India. Over 25 crore people having PAN cards while the government has issued the Aadhaar cards to 111 crore people in the country.
Pursuant to this, the Central Board of Direct Taxes (CBDT) had said the linking of Aadhaar and PAN will be a “must” for the filing of income tax returns (ITR) and obtaining PAN from July 1.