In case you are among those worried about losing your PAN card because you haven't yet linked it to your Aadhaar number, fret not.
The IT department has come out with a clarification that not linking the two credentials will not lead to either a cancellation or invalidation of PAN cards on July 1. The clarification was made after a a mad rush on the tax website caused the servers to crash.
Previously, the department had suggested that the interlinking was a must for filing income-tax returns from July 1.
In fact, quoting the Aadhar number has also been made compulsory for those applying for fresh PAN cards. The circular confused users who thought that July 1 is the deadline and not linking the Aadhaar and PAN by then will result in a potential invalidation of the PAN card.
A senior official from the tax department who was quoted by PTI clarified that the date for invalidation of PAN cards has not been confirmed yet. Moreover, those filing ITRs (Income-tax returns) and who haven't linked their PAN with their Aadhar could still choose to mention their Aadhar number while filing. The department will consider this as linking of the two sets of information.
Section 139AA of the Income Tax Act offers a better and a reasonable clarification on the deadline. It reads, "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 such authority in such form and manner as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette: Provided that in case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be deemed to be invalid and the other provisions of this Act shall apply, as if the person had not applied for allotment of permanent account number."
Although this news should ease your worries momentarily, we still recommend that you keep both cards handy and apply quickly in case you have missed doing so till date.