SC partially stays linking of PAN with Aadhaar

Jun 9, 2017 15:14 IST

SC partially stays linking of PAN with AadhaarThe Supreme Court (SC) on 9 June 2017 upheld the newly-inserted provision in the Income Tax Act, 1961 mandating linking of Aadhaar number with Permanent Account Number (PAN), but it partially stayed its operation.

A Bench of Justices AK Sikri and Ashok Bhushan pronounced this ruling while hearing two petitions challenging Section 139AA of the Income Tax Act, 1961.

The lead petition was filed by CPI leader Binoy Viswam while the second petition was filed by SG Vombatkere, a retired Indian Army Officer and Bezwada Wilson, founder and convenor of Safai Karmachari Andolan.

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Earlier in March 2017, the Union Government proposed to make the Aadhaar card mandatory to file Income Tax Return (ITR) and for applying Permanent Account Number (PAN) with effect from 1 July 2017.

It also stated that PAN will be rendered invalid from 1 July 2017 if a user does not link it with Aadhaar card details. The government defended its move by mentioning that such linkage will help to erase fake and fraudulent financial accounts.

The proposal was made through an amendment to the Finance Bill, 2017. The Union Government introduced as many as 40 amendments to the Finance Bill in an 'unprecedented move'.

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