Legislation UpdatesNotifications

In exercise of the powers conferred under sub-section (2) of Section 139 AA of the Income Tax Act, 1961, the Central Government, hereby notifies that every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to the Principal Director General of Income-tax (Systems) or Principal Director of Income-tax (Systems) in the form and manner specified in Notification no. 7 dated 29th of June, 2017 issued by the Principal Director General of Income Tax (Systems) by 30-09-2019.

2. This notification shall not be applicable to those persons or such class of persons or any State or part of any State who/which are/ is specifically excluded under sub-section (3) of Section 139 AA of the Act.

3. However, notwithstanding the last date of linking of Aadhaar number with PAN being extended to 30-09-2019 in para 1 above, it is also made clear in Circular o. 6 of 2019 that w.e.f. 01-04-2019, it is mandatory to quote Aadhaar number while filing the return of income as required under Section 139 AA (1)(ii) unless specifically exempted as per any notification issued under sub-section (3) of Section 139 AA of the Act. It is also made clear that the returns being filed either electronically or manually cannot be filed without quoting the Aadhaar Number.

Notification No. 31/2019

Dated 31-03-2019

Central Board of Direct Taxes

Legislation UpdatesNotifications

S.O. 877(E)—Whereas, the use of Aadhaar as identity document for delivery of services or benefits or subsidies simplifies the Government delivery processes, brings in transparency and efficiency, and enables beneficiaries to get their entitlements directly to them in a convenient and seamless manner and Aadhaar obviates the need for producing multiple documents to prove one’s identity;

And whereas, the Ministry of Labour and Employment (hereinafter referred to as the Ministry) in the Government of India is administering the Central Sector Scheme of Pradhan Mantri Shram Yogi Maan-dhan (hereinafter referred to as the Scheme) which is implemented through the Life Insurance Corporation of India and Common Service Centres (hereinafter referred to as the implementing agency).

And whereas, the Scheme aims at providing pension support for Unorganized Workers (hereinafter referred to as the beneficiaries), as defined in the extant scheme guidelines. This made under clause (c) of Sub-section (1) of Section 3(1)(c) of the Unorganised Workers Social Security Act, 2008 (33 of 2008), the Central Government is mandated to formulate suitable welfare schemes for Unorganised workers on old age protection. The beneficiaries are basically engaged as home-based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, rickshaw pullers, landless labourers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio-visual workers and similar other occupations. The Central Government shall for the purposes of this Scheme, establish a Pension Fund to be administered in consultation, wherever required, with the National Board. The Central Government shall also contribute to the Pension Fund the equal amount as contributed by an eligible subscriber (hereinafter referred to as the benefits);

And whereas, the aforesaid Scheme involves recurring expenditure incurred from the Consolidated Fund of India;

Now, therefore, in pursuance of the provisions of Section 7 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016) (hereinafter referred to as the said Act), the Central Government hereby notifies the following, namely,-

1. (1) An individual desirous of availing the benefits under the Scheme shall be required to furnish proof of possession of Aadhaar number or undergo Aadhaar authentication.

(2) Any individual desirous of availing the benefits under the Scheme, who does not possess the Aadhaar number or has not yet enrolled for an Aadhaar, shall have to apply for Aadhaar enrolment provided he or she is entitled to obtain Aadhaar as per the provisions of Section 3 of the said Act and such individuals may visit any Aadhaar enrolment centre (list available at Unique
Identification Authority of India website www.uidai.gov.in) for Aadhaar enrolment.

(3) Any individual who has given his or her Aadhaar number or Aadhaar Enrolment ID or has undergone Aadhaar authentication for availing the benefits under the Scheme,

(a) shall be deemed to have given his or her consent to the Ministry or through its implementing agency to use his or her Aadhaar number and other information provided from time to time to verify his eligibility for scheme with income tax or employee State insurance corporation scheme or employee provident fund scheme or National Pension Scheme contributed by central government and other concerned departments or agencies as per the extant scheme guidelines.

(b) shall be deemed to have given his or her consent to Unique Identification Authority of India to share his or her information except core biometrics available with UIDAI to the Ministry or through its implementing agency from time to time for verification of the veracity of the information provided by him.

(4) The benefit shall be transferred by Government of India through the pension fund created for the purpose to the beneficiaries pension account maintained by the implementing agency.

(5) As per Regulation 12 of Aadhaar (Enrolment and Update) Regulations, 2016, the Ministry through its implementing agency, is required to offer Aadhaar enrolment facilities for the beneficiaries who are not yet enrolled for Aadhaar, and in case there is no Aadhaar enrolment centre located in the respective Block or Taluka or Tehsil, the Ministry through its implementing agency shall provide Aadhaar enrolment facilities at convenient locations in coordination with the existing Registrars of UIDAI or by becoming UIDAI Registrars themselves.

Provided that till the time Aadhaar is assigned to the individual, benefits under the Scheme shall be given to such individuals, subject to the production of the following documents, namely:–

(a) if he or she or has enrolled, his Aadhaar Enrolment identity Document slip; and

(b)   (i) Any one of the following documents: Bank Passbook or Post office Passbook with photo; or (ii) Electoral Photo Identity Card (EPIC) issued by the Election Commission of India; or (iii) Permanent Account Number (PAN) Card; or (iv) Passport; or (v) Driving licence issued by Licencing Authority under the Motor Vehicles Act, 1988 (59 of 1988); or (vi) Ration Card; or (vii) Mahatma Gandhi National Rural Employment Guarantee Act Card; or (viii) Kisan Photo Passbook; or (ix) Certificate of identity having photo of such person issued by a Gazetted Officer or a Tehsildar on an official letter head; or (x) any other document as specified by the Ministry:

Provided further that the above documents shall be checked by an officer designated by the Ministry for that purpose.

2. In order to provide convenient and hassle free benefits to the beneficiaries under the Scheme, the Ministry through its implementing agency shall make all the required arrangements to ensure wide publicity through media is given to the beneficiaries to make them aware of the requirement.

3. In all cases, where Aadhaar authentication fails due to poor biometrics of the beneficiaries or due to any other reason, the following exception handling mechanisms shall be adopted, namely:-

(a) in case of poor fingerprint quality, Integrated Risk Information System scan or face authentication facility shall be adopted for authentication, thereby the Ministry through its implementing agency shall make provisions for Integrated Risk Information System scanners or face authentication along with finger-print authentication for delivery of benefits in seamless manner;

(b) in case of biometric authentication through fingerprints or Integrated Risk Information System or face authentication is not successful, wherever feasible and admissible authentication by Aadhaar One Time Password or Time-based One-Time Password with limited time validity, as the case may be, shall be offered;

(c) in all other cases where biometric or One Time Password or Time-based One-Time Password authentication is not possible, benefit may be given on the basis of physical Aadhaar letter whose authenticity can be verified through the Quick Response code printed on the Aadhaar letter. The necessary arrangement of Quick Response code reader shall be provided at the convenient locations by the Ministry through its implementing agency;

4. This notification shall come into Force from the date of its publication in the Official Gazette in all the States and Union Territories Administrations, except the State of Assam, Meghalaya and the State of Jammu and Kashmir.

Ministry of Labour and Employment

Hot Off The PressNews

Vide its orders dated 31.07.2017, 31.08.2017, 08.12.2017 and 27.03.2018, CBDT had allowed time till 30th June, 2018 to link PAN with Aadhaar while filing the tax returns. Upon consideration of the matter, CBDT vide order dated 30.6.2018 under Section 119 of the Income Tax Act, 1961 has further extended the time for linking PAN with Aadhaar till 31st March, 2019.

Ministry of Finance

[F.No.225/270/2017/ITA.II]

Hot Off The PressNews

Vide Notification No. 18/2018 dated 9th April, 2018, CBDT has added ‘Transgender’ in the option to select gender while filling Form Number 49A and Form Number 49AA related to PAN application for individual resident and non-resident applicants.

G.S.R. 352(E).—In exercise of the powers conferred by Section 139A read with Section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. Short, title and commencement.—

(1) These rules may be called the Income–tax (Fourth Amendment) Rules, 2018.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in Appendix II, in Form number 49A and Form number 49AA, for column number 4 and entries relating thereto, the following item shall be substituted, namely:-

[Notification No. 18/2018/F.No. 370142/40/2016-TPL]

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, sub-­section (ii) vide Notification Number S.O. 969 (E), dated the 26th March, 1962 and last amended vide Notification Number S.O. 1517(E), dated the 06th April, 2018.

Ministry of Finance

 

Hot Off The PressNews

Under the provisions of recently introduced section 139AA of the Income Tax Act, 1961 (the Act), with effect from 01.07.2017, all taxpayers having Aadhaar Number or Enrolment Number are required to link the same with Permanent Account Number (PAN). In view of the difficulties faced by some of the taxpayers in the process, the date for linking of Aadhaar with PAN was initially extended till 31st August, 2017 which was further extended upto 31st December, 2017.

It has come to notice that some of the taxpayers have not yet completed the linking of PAN with Aadhaar. Therefore, to facilitate the process of linking, it has been decided to further extend the time for linking of Aadhaar with PAN till 31.03.2018.

Ministry of Finance

Hot Off The PressNews

Supreme Court refused to pass interim order in the Aadhaar matter, however, it clarified that those who don’t have Aadhaar Card won’t be deprived of any government schemes or benefits till next date of hearing.

On 09.05.2017, Senior Advocate Shyam Divan had urged the Court that  some urgent orders are required on the interim prayers made by the petitioners, as enrollment under Aadhaar in respect of certain welfare schemes is required by 30th June, 2017.

It is important to note that on 09.06.2017, the bench of Dr. A.K. Sikri and Ashok Bhushan, JJ had in Binoy Viswam v. Union of India, 2017 SCC OnLine SC 647, upheld the validity of Section 139AA of Income Tax Act, 1961 that makes the linking of Aadhaar Card to the Permanent Account Number (PAN) mandatory and said that the provision is neither discriminatory nor it offends equality clause enshrined in Article 14 of the Constitution. As per the order of the Court, those who have already enrolled themselves under Aadhaar scheme would comply with the requirement of sub-section (2) of Section 139AA of the Act. Those who still want to enrol are free to do so. However, those assessees who are not Aadhaar card holders and do not comply with the provision of Section 139(2), their PAN cards be not treated as invalid for the time being.

Source: ANI

 

Case BriefsSupreme Court

Supreme Court: The bench of Dr. A.K. Sikri and Ashok Bhushan, JJ, upholding the validity of Section 139AA of Income Tax Act, 1961 that makes the linking of Aadhaar Card to the Permanent Account Number (PAN) mandatory, said that the provision is neither discriminatory nor it offends equality clause enshrined in Article 14 of the Constitution. The bench also said that Section 139AA is also not violative of Article 19(1)(g) of the Constitution insofar as it mandates giving of Aadhaar enrollment number for applying PAN cards in the income tax returns or notified Aadhaar enrollment number to the designated authorities.

Rejecting the contention that since enrollment under Aadhaar Act, 2016 is voluntary, it cannot be compulsory under the Income Tax Act, the Court said that in order to curb blackmoney, money laundering and tax evasion etc., if the Parliament chooses to make the provision mandatory under the Income Tax Act, the competence of the Parliament cannot be questioned on the ground that it is impermissible only because under Aadhaar Act, the provision is directory in nature. The Court also noticed that one of the main objectives of Aadhaar-PAN linkage is to de-duplicate PAN cards and to bring a situation where one person is not having more than one PAN card or a person is not able to get PAN cards in assumed/fictitious names and it is the prerogative of the Legislature to make penal provisions for violation of any law made by it.

The Court, however, clarified that the validity of the provision is upheld subject to the decision of the Constitution bench where the issue relating to Right to Privacy and data leakage due to Aadhaar-PAN linkage is under consideration. The Court said that till the said issue is decided there will be a partial stay on the operation of proviso to sub-section (2) of Section 139AA of the Act, that says that the PAN allotted to the person will be deemed to be invalid in case of failure to intimate the Aadhaar number.

Stating that the proviso to Section 139AA(2) cannot be read retrospectively, the Court said that if failure to intimate the Aadhaar number renders PAN void ab initio with the deeming provision that the PAN allotted would be invalid as if the person had not applied for allotment of PAN would have rippling effect of unsettling settled rights of the parties. It has the effect of undoing all the acts done by a person on the basis of such a PAN. It may have even the effect of incurring other penal consequences under the Act for earlier period on the ground that there was no PAN registration by a particular assessee. The Court also said that the Parliament may consider as to whether there is a need to tone down the effect of the said proviso by limiting the consequences.

As per the order of the Court, those who have already enrolled themselves under Aadhaar scheme would comply with the requirement of sub-section (2) of Section 139AA of the Act. Those who still want to enrol are free to do so. However, those assessees who are not Aadhaar card holders and do not comply with the provision of Section 139(2), their PAN cards be not treated as invalid for the time being. [Binoy Viswam v. Union of India, 2017 SCC OnLine SC 647, decided on 09.06.2017]