Aadhaar now mandatory for filing Income Tax Return; This is how PAN linking helps you

In a big win for the government, the Supreme Court of India today upheld the constitutional validity of Aadhaar. However, the apex court also put a number of curbs on practices that had raised fears of data theft, and violation of privacy. Among many measures announced, the SC made it mandatory PAN (Permanent Account Number) to be linked to Aadhaar for filing income tax return (ITR). 

ITR is a form which includes incomes from sources and taxes thereon to IT department. Every citizen is obligated to file ITR before the IT department. There are various forms depending upon the category of income like  ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. These forms are needed to be filed before a specified date decided by the IT department. 

Earlier, taxpayers only needed to feed PAN information for filing ITR, however, now with the SC’s verdict Aadhaar has emerged as mandatory information. The 12-digit biometric is essential part of KYC (Know Your Client) requirements. 

According to section 139AA of the Income Tax Act, every citizen who is eligible to obtain Aadhaar to quote either the Aadhaar Number or the Enrollment ID while filing ITR or applying for PAN.

Major reason for making Aadhaar mandatory is to authenticate tax filing and improve tax collections. 

With Aadhaar card, a taxpayer can also verify their returns online with the help of an Electronic Verification Code (EVC). This means, a taxpayer will no longer have to wait for 1-page verification document i.e. the ITR-V to the Income Tax Department in Bangalore. 

According to ClearTax report, electronic Verification Code (EVC) is a 10 digit alphanumeric code which is sent to the registered mobile number of the tax filer while filing his/her returns online. It helps verify the identity of the tax filers. Such tax filers include individuals as well as Hindu Undivided Family (HUF).

If you are planning to verify your returns via Aadhaar card, then make sure your PAN is linked with the biometric. Once you linked with PAN, then you will be eligible for e-verifying your ITR. 

How to link Aadhaar with ITR: Follow these steps to ensure linking. 

Step 1 - Log on to https://www.incometaxindiaefiling.gov.in/home

Step 2 - The moment you log in, a message would pop up asking you to link your Aadhaar number with your e-filing account. However, there might be cases where you would not see the pop up, in such,  go to the blue tab named ‘Profile Settings’ on the top bar and click on the ‘Link Aadhaar’ button.

Step 3 - After entering into the link, check your PAN details and add your Aadhaar number. Remember to save all these details by clicking the ‘SAVE’ button. 

As to e-verify returns, you can follow the below mentioned steps after linking your PAN with Aadhaar. 

Step 1 - Upload your ITR via the Income Tax e-filing

Step 2 - You will be then asked for  mode of verification for your returns. These verification will have options like 'Already have an EVC to e-verify my return' - 'Do not have an EVC and would like to generate EVC' - ‘Would like to generate Aadhaar OTP to e-Verify’. 

Step 3 - As the third option says via Aadhaar OTP, the moment you click that option, a one time password will be sent to the mobile number linked with your Aadhaar. That OTP will only be valid for 10 minutes. 

Step 4 - Enter the OTP and hit ‘Submit’