The linking of Aadhar with PAN (Permanent Account Number) card has been extended to August 31, informed the Finance Ministry on Monday.
The Central Board of Direct Taxes (CDBT) also said that the Income Tax Returns (ITRs) will be processed only after the linking has been complete.
The Finance Ministry tweeted that while filing the ITR it is sufficient to acknowledge Aadhar number but the linking the two cards is to be completed by August 31.
Actual linking of PAN with Aadhaar can be done subsequently, but any time before 31st August, 2017.— Ministry of Finance (@FinMinIndia) July 31, 2017
Earlier, Revenue Secretary Adia had told the media that PAN cards not linked with Aadhar would be cancelled.
On Monday the government also extended the deadline for filing Income Tax Returns till August 5.
The decision to extend the deadline was taken after a meeting of the revenue department and the CBDT.
The tax department in a statement said that sighting the difficulties faced by the taxpayers the deadline was increased.
The government has been stating that linking of Aadhaar with PAN was an effective measure to weed out bogus PAN cards.