Last Modified: Fri, Jun 09 2017. 03 11 PM IST
Aadhaar linkage with PAN mandatory, rules Supreme Court
Supreme Court rules that it would be mandatory for all Aadhaar holders to link the unique identity number with the PAN for filing income tax returns
The Supreme Court rejected the petitioner’s arguments that the law is arbitrary and has been passed without legislative competence. Photo: Min
New Delhi: The Supreme Court on Friday ruled that it would be mandatory for all Aadhaar holders to link the unique identity number with the permanent account number (PAN) for filing income tax returns.
However, in a partial setback to the government, the court stayed retrospective invalidation of PAN for non-compliance. “PAN cannot be treated as invalid for the time being since the challenge to the Aadhaar Act is pending,” the court said.
The court also said that an assessee who does not possess Aadhaar will not face criminal consequences for not linking PAN with Aadhaar.
A bench comprising justices A.K. Sikri and Ashok Bhushan heard three petitions, filed by Binoy Vishwam, a senior Communist Party of India leader; Bezwada Wilson, a Dalit rights activist; and S.G. Vombatkere, a retired Army officer, against the decision.
The court rejected the petitioner’s arguments that the law is arbitrary and has been passed without legislative competence.
As per the Aadhaar (Targeted Delivery of Financial Subsidies, Benefits and Services) Act, 2016, the unique identity number is mandatory only to receive social welfare benefits. But according to the provisions of the Finance Act 2017, the Aadhaar number or Aadhaar enrolment number will be mandatory to file income tax returns and to apply for a new PAN. An existing PAN can be declared void if the taxpayer does not link it with Aadhaar by 31 July.
Senior advocates Arvind Datar and Shyam Divan had argued that the decision to link Aadhaar with PAN is legally unsustainable as the validity of Aadhaar is yet to be decided by the court.
In August 2015, a three-judge bench referred the issue of whether an Indian citizen enjoys the fundamental right to privacy to a larger constitution bench, which is yet to be constituted.