What Happens If You Don’t Link Aadhaar by the 31 March Deadline?

Worried about what will happen if you don’t link things to Aadhaar? We try to answer the big questions

We try to answer some of the questions.

(Photo: Liju Joseph/The Quint)

The challenge to the constitutionality of Aadhaar continues in the Supreme Court, but we will almost certainly not get the Court’s decision before 31 March 2018. This is, of course, the last date specified by the government for mandatory linking of various services with Aadhaar, including bank accounts and mobile numbers.

So what will happen on 31 March? Will the deadline be extended? Will the Supreme Court hold that no linking is required? Or will we all lose access to those services if we fail to link Aadhaar to them?

We try to answer some of these pressing questions.

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Will the deadline be extended?

The lawyers arguing against Aadhaar in the Supreme Court have asked the Court to pass an interim order extending the deadline. However, the judges have declined to do this till now, though Justice Chandrachud indicated during a recent hearing that this will be done if proceedings stretch on beyond 31 March 2018. The judges have also noted that even if arguments finish before the deadline, the deadline will be temporarily suspended till such time as the final judgement is passed.

It is, of course, advisable that the Court extend the deadline in advance and for a sufficiently long period of time, to ensure clarity and allow enough time for linking to be done in case the judgement upholds the validity of mandatory linking. Not doing so is allowing the service providers to pressurise people to link Aadhaar to the services, even though the Court may find that mandatory linking is illegal.

Despite this, there is no reason to panic at this point, as nothing can be deactivated before 31 March 2018, and the Court cannot ignore the deadline if proceedings go on beyond it. We can just hope that they release the necessary clarification sooner rather than later.

What happens IF the Supreme Court upholds the validity of mandatory Aadhaar linking?

If the Supreme Court holds that it is okay to make Aadhaar linking a precondition for various services, then this will need to be completed before whatever new deadline is specified. It will be important to keep track of these as there may be different deadlines for different services.

Bank Accounts and Other Financial Services

What will happen to my bank account if I don’t link it before the final deadline (whether 31 March or later)?

If mandatory linking is upheld, you will need to link your bank account to your Aadhaar. If you have an existing account, this needs to be done by the given deadline, which could conceivably be 31 March, but is likely to be extended by the court. If setting up a new bank account, you will need to link it within 6 months of setting it up.

This is because of the Prevention of Money Laundering Rules 2015, which were amended last year to say that KYC and verification of accounts have to be done with Aadhaar.

According to Rules 17 and 18, if you don’t link Aadhaar to your bank account by the relevant deadline, your account shall “cease to be operational”. This will lead to a complete freeze on your account, meaning you cannot withdraw funds, perform any transactions or even close down the account.

Can I get my account unfrozen if this happens?

Yes, so there is no need to panic. According to the Rules, any bank account will be made operational again as soon as Aadhaar details are provided.

However, there is no guidance from the government, RBI or UIDAI as to how long it would take to make the account operational again. The banks also do not seem to have any idea when this will happen. The Quint spoke to different customer care executives for Axis Bank – one said that the account would become operational again in 3 working days, while the other said the RBI is yet to specify the process.

The problem here is obviously that unless the Supreme Court rules that linking cannot be mandatory, there is no other option to ensure your bank account remains operational. This means that it won’t be possible in such a situation to hold out from getting an Aadhaar card, as some people still have. However, there is no need for immediate action till the Supreme Court passes its ruling – your bank account cannot be frozen before the final deadline in any event.

What about accounts for provident funds, mutual funds and other financial services?

Same as above.

Mobile Numbers/SIMs

What will happen to my mobile number/SIM if I don’t link it before the final deadline?

If mandatory linking is upheld, you will need to link your existing mobile number(s) to your Aadhaar for re-verification before the final deadline. This is in accordance with a Department of Telecommunication circular dated 23 March 2017.

Interestingly, the DoT has not clarified in this circular or elsewhere what will happen if you fail to link your mobile number to Aadhaar. In telephonic and text messages, various service providers have indicated that failing to do so will lead to disconnection of your number.

Airtel’s online FAQs, however, reflect the fact that thereis no clarity on this. According to this, “Government instructions are awaited on the same”.

Airtel’s FAQs on Aadhaar reverification.

Idea’s online FAQs says: “In case you don’t complete the process before 31st Mar 18, services on your mobile number might get restricted.” (emphasis supplied)

Vodafone’s and Reliance Jio’s online FAQs say that the number will be disconnected if re-verification is not done. However, this information seems questionable since they haven’t even updated their FAQs to note the extended deadline – they still say that the last day for linking is 6 February 2018.

What happens if my mobile number is disconnected?

The government hasn’t informed the telecom companies what to do if re-verification with Aadhaar isn’t done, and they have not released any rules/regulations on the same to the public. The consequences will therefore depend on which telecom company you use. However, since there do not appear to be any legally specified consequences, if your number is disconnected, this would be illegal.

Unfortunately, in keeping with the poor communication of information relating to Aadhaar and its linking, there is no specified authority to complain to if something like this happens. It is therefore important that the Supreme Court address this issue in their interim order/judgement, especially since the government incorrectly claims that linking mobile numbers to Aadhaar was directed by the Supreme Court last year.

Tax Returns

What will happen if I fail to mention my Aadhaar number on my tax returns?

Last year, the government introduced a new provision in the Income Tax Act, under which it became mandatory to link your Aadhaar to your PAN number, and also required it to be quoted on your tax return. Following a Supreme Court judgement, you could avoid this for tax returns for the financial year 2016-17, IF you submitted your return by 31 December 2017.

From that date onwards, it has become mandatory to mention your Aadhaar number on your tax returns, whether for the financial year 2016-17 or otherwise. This is slightly different from linking with various services, of course, but there will be consequences here. Failing to do so could cause the IT Department to disregard your tax return, which would lead to penalties for non-filing of returns.

The Constitution Bench could still change this, if they hold that this makes Aadhaar effectively mandatory, despite the Aadhaar Act saying it is voluntary. However, this will come too late for anyone needing to file a return by 31 March 2018, which is the last date for filing returns for the financial year 2016-17. If you’re looking to file returns for 2017-18 and onwards, it’s best to wait for the Supreme Court’s final judgement.

What do I do if I need to file a tax return for 2016-17 but don’t have an Aadhaar number?

The last date for filing returns for 2016-17 is 31 March 2018. Going by the book, there is no way around the requirement of quoting your Aadhaar number for this.

Of course, in yet another example of the problems with Aadhaar infrastructure, BusinessStandard reports that filling in all 0s or all 1s on a tax return will allow you to avoid filling in an actual Aadhaar number. However, this is hardly the solution you’d want to follow.