The section 139 AA of the Income tax stipulates "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."
Those failing to adhere to the guideline shall not see their PAN becoming invalid in the near future but shall come under scrutiny as these individuals would be deemed to suppress some vital income information. The PAN and Aadhaar linking is supposed to widen the tax base.
As per the sources, the tax department is likely to announce a new date for the linking of the two important IDs and those failing to comply with the specification shall be deemed to pose potential revenue risk to the department of tax.
The earlier July 1 deadline for the mandatory linking of PAN and Aadhaar was announced for tax-filing particularly.
As per the tax dept. database, over 20 million taxpayers have successfully linked PAN with Aadhaar. And any reluctance to link Aadhaar with PAN shall be deemed as an attempt to suppress some vital information.
Linking of Aadhaar with bank accounts that has been mandated with effect from June 1 shall let the tax authorities to view an individual's financial possessions as well as spending pattern. Through which they can infer if the stated income while filing return is correct or understated.