Here is another clarification on linking Aadhaar number to PAN. Though the order says, it is mandatory to link the both as effective from July 1, here is an exemption.

A certain class of individuals are exempted from linking Aadhaar to PAN, and according to Central Board of Direct Taxes (CBDT) Section 139AA of the Income Tax Act, people who come under these four categories need not bother about linking the two documents for now.

The categories are:

1)    Non-resident Indians (NRIs) as per Income Tax Laws

2)    Not an Indian Citizen

3)    Those above 80 years during the tax year

4)    Residents of Assam, Meghalaya, Jammu and Kashmir


The Central Board of Direct Taxes (CBDT) in its notification on May 11, 2017, had stated that the people in the above-mentioned categories should be exempted from the purview of Section 139 AA of the Income Tax Act. This notification had come even before the Supreme Court announced the verdict upholding the legality of section 139AA.

Thus the CBDT has notified that section 139AA of the Income Tax Act is not applicable to certain individuals, reported Economic Times. But this rule is applicable only if the people falling under the four categories do not have an Aadhaar enrolment ID.

Under the new verdict of the Supreme Court, every person in India eligible to get an Aadhaar number and has been allotted a PAN within July 1, 2017, has been asked to link Pan with Aadhaar number.

Following the Supreme Court’s verdict, CBDT on its release dated June 10, 2017, clarified that every person, who possesses both PAN and Aadhaar card, link these two as mandated by the tax laws. This applies irrespective of the fact whether the individuals file tax returns or not.

Thus, the PAN of those who do not have Aadhaar or cannot obtain one, for the time being, will not be cancelled, says the report in Economic Times.