PAN

• PAN is a 10-digit alphanumeric number used for keeping a track of financial transactions
• It is issued to all judicial entities identifiable under the Indian Income Tax Act, 1961.

It is issued by the Indian Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT) and it also serves as an important proof of identification

Section 139AA of the Income Tax Act

• It was introduced by the Finance Act of 2017.
• Section 139AA(1) of the Income Tax Act provides for mandatory quoting of Aadhaar/Enrolment ID of Aadhaar application form, for filing of return of income and for making an application for allotment of PAN with effect from 1st July, 2017.
• Section 139AA(2) of the Income Tax Act provides that every person who has been allotted PAN as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar, shall intimate his Aadhaar on or before a date to be notified by the Central Government.

The proviso to section 139AA (2) provides that in case of non-intimation of Aadhaar, the PAN allotted to the person shall be deemed to be invalid from a date to be notified by the Central Government.