As per Section 139AA of the Income Tax Act, every person who has been allotted PAN and who is eligible to obtain Aadhaar, shall intimate his Aadhaar number to the Income-tax department otherwise his PAN shall be inoperative. The deadline for linking of PAN and Aadhar had been extended several times and now the new deadline is March 31, 2020. So, if a person doesn’t link his PAN with Aadhar by the said date, his PAN shall be inoperative.
"However, it is to be noted that the validity of Aadhar Act is itself in question before the larger bench of the Supreme Court. The Hon’ble Supreme Court in case of Rojer Mathew v. South Indian Bank Ltd. 2019, has referred the issue of ‘whether Aadhaar Act was rightly introduced as a 'Money Bill' for consideration by a Larger Bench.
Thus considering the question of constitutional validity of Aadhar Act, the Gujarat High Court (in the case of Bandish Saurabh Soparkar v. Union of India 2020 (Gujarat)) has given relief to the taxpayers and provided that PAN not linked with Aadhar shall not be declared inoperative till the judgment of Supreme Court in aforesaid case is delivered and available", says chartered accountant Naveen Wadhwa, DGM, Taxmann.com.
The Gujarat High Court judgement states: “PAN of applicant shall not be declared inoperative and applicant would not be in default in any proceedings only for reason that permanent account number is not linked with Aadhaar or Aadhaar number is not quoted and applicant shall not be subjected to proviso to sub-section (2) of section 139AA till judgment of Supreme Court in Rojer Mathew v. South Indian Bank Ltd. and others in Civil Application No. 8588 of 2019 is delivered and available”