Have you filed your income tax return? July 31, 2017 is the last date to file your return for assessment year 2017-18. "Make correct disclosures and file your return on or before 31st July, 2017," the Income Tax Department said on microblogging site Twitter. Are you aware that Aadhaar will be mandatory for filing your ITR this time around? You are required to link your Aadhaar with PAN to file return. Another thing to keep in mind this time is: you need to furnish information of cash deposited in your account during demonetisation in your tax return in some cases.
Demonetisation, or a pull-out of Rs 500 and Rs 1,000 notes also referred to as 'notes ban', was announced on November 8, 2016. Days after the announcement, banks were rushed with masses of people depositing or exchanging the invalid bank notes. Now, details of cash deposited in bank accounts aggregating to Rs 2 lakh or more from November 9, 2016 to December 30, 2016 are required to be mentioned in the income tax return or ITR. This was said by the taxman on Twitter.
"The information will be matched with the information in possession of the income tax department," the Income Tax Department added.
While Aadhaar-PAN linking will be mandatory for filing income tax returns, it will also be required for obtaining a new PAN. Aadhaar, a 12-digit identity number based on biometrics, can be linked with the PAN, a 10-digit alphanumeric ID number for tax returns, in a number of ways. The Income Tax Department has time and again come out with many communications asking potential taxpayers to carry out Aadhaar-PAN linking.
Among the latest moves by the taxman to encourage Aadhaar-PAN linking was an email received by many individuals. In the email, addressed to the taxpayers, the Income Tax Department's e-filing team said: "As per section 139AA of the Income Tax Act, 1961, it is mandatory for taxpayers to link their Aadhaar with PAN for filing Income Tax Return from 1-July-2017."
The e-filing team also mentioned two ways on the income tax e-filing portal - incometaxindiaefiling.gov.in - to link Aadhaar with PAN: by using 'Link Aadhaar' under the services section on home page and by using 'Link Aadhaar' under 'Profile Settings' after logging into your e-filing account. While the first option is for users unregistered on the e-filing website, the second is for registered users having login ID.
How to link your PAN with Aadhaar
For unregistered users
Spot and click on the new 'Link Aadhaar' hyperlink on the left hand side of the income tax e-filing website.
Fill details in the respective fields, follow instructions and check the 'Request OTP' option.
Click the 'Link Aadhaar' button at the bottom of the form.
"Enter Aadhaar no. and ENTER NAME EXACTLY AS GIVEN IN AADHAAR CARD (avoid spelling mistakes) and submit," the Income Tax Department has said in an earlier communication.
For registered users
Once you are logged into the e-filing portal, spot the 'Link Aadhaar' option under 'Profile Settings'.
In case your Aadhaar is already linked with PAN, 'Link Aadhaar' section displays the following message.
"Ensure that the ITR is compliant with amount deposited in bank accounts during the period of demonetisation and while computing income, the amounts so deposited are considered/taken into account while paying taxes...Cash deposits made in the above period may thus be fully and truly disclosed in the ITR," the tax department added.
The Income Tax Department had earlier sent SMSs to some taxpayers asking them to link Aadhaar with PAN. The SMS read: "Aadhaar linking with PAN is mandatory for filing of Income Tax Returns from 1-July-2017. Please visit www.incometaxindiaefiling.gov.in and Link Your Aadhaar."