Is Aadhaar Number Mandatory Under the Income Tax Act? Yes, quoting the Aadhaar number is mandatory in various cases under the Income Tax Act, 1961. The government has linked Aadhaar with PAN to prevent tax evasion and duplicate PANs. 📌 Key Provisions Related to Aadhaar Under Income Tax Act 1️⃣ MandaRead more
Is Aadhaar Number Mandatory Under the Income Tax Act?
Yes, quoting the Aadhaar number is mandatory in various cases under the Income Tax Act, 1961. The government has linked Aadhaar with PAN to prevent tax evasion and duplicate PANs.
📌 Key Provisions Related to Aadhaar Under Income Tax Act
1️⃣ Mandatory Quoting of Aadhaar (Section 139AA)
- As per Section 139AA, quoting Aadhaar number or Aadhaar Enrolment ID is mandatory while:
- Filing Income Tax Returns (ITR)
- Applying for a new PAN
2️⃣ Linking PAN with Aadhaar
- As per CBDT notification, PAN will become inoperative if not linked with Aadhaar within the prescribed deadline.
- To check or link, visit the Income Tax e-filing portal.
3️⃣ TDS and TCS Applicability (Section 206AA & 206CC)
- If a taxpayer does not provide PAN or Aadhaar, TDS/TCS is deducted at a higher rate of 20% under Section 206AA & 206CC.
4️⃣ Aadhaar for Verification & e-KYC
- Aadhaar is required for e-verification of ITR and e-KYC of financial transactions like opening bank accounts, investing in securities, etc.
5️⃣ Filing ITR Without Aadhaar
- If an individual does not have an Aadhaar number, they must quote the Aadhaar Enrolment ID while filing their return.
6️⃣ Penalty for Non-Linking
- If PAN becomes inoperative due to non-linking with Aadhaar, transactions requiring PAN (e.g., bank accounts, Demat, property sales) may get restricted.
📢 Final Thoughts
Aadhaar is mandatory for filing ITR, linking with PAN, and certain tax-related transactions. Ensure your PAN is linked to Aadhaar to avoid penalties and non-compliance issues. 🚀
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Defective Return Under Income Tax Act (Section 139(9)) A Defective Return refers to an income tax return (ITR) that is incomplete or incorrect due to missing or improper information. Under Section 139(9) of the Income Tax Act, if a return is found defective, the taxpayer is given an opportunity to cRead more
Defective Return Under Income Tax Act (Section 139(9))
A Defective Return refers to an income tax return (ITR) that is incomplete or incorrect due to missing or improper information. Under Section 139(9) of the Income Tax Act, if a return is found defective, the taxpayer is given an opportunity to correct and resubmit it.
📌 When is a Return Considered Defective?
A return is treated as defective if it has any of the following errors or omissions:
1️⃣ Mandatory Details Missing
2️⃣ Incomplete or Inconsistent Information
3️⃣ Tax Computation & Payment Issues
4️⃣ Incorrect ITR Form Used
5️⃣ Missing Attachments (For Audit Cases)
📢 What Happens If a Return is Defective?
If the Income Tax Department detects a defective return, they issue a Notice under Section 139(9), giving the taxpayer 15 days to rectify and resubmit the correct return.
🚀 If the defect is not rectified within the given time, the return may be treated as invalid, and the taxpayer may face penalties or further notices.
To avoid a defective return, always ensure that the ITR form is properly filled, taxes are paid, and supporting documents are submitted where required.
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