Aadhaar PAN rules: Currently, quoting of PAN is mandatory for cash transactions exceeding Rs.
50,000Did you know that a PAN or Permanent Account Number is generated automatically if an income tax return (ITR) is filed by quoting an Aadhaar number? The Income Tax Department said last month that a PAN will be generated automatically if a person files the ITR is filed using Aadhaar.
Current income tax laws allow an individual to furnish Aadhaar interchangeably with PAN.
That means instead of the 10-character PAN, a 12-digit Aadhaar number or Unique Identity Number can be quoted under the tax laws.Meanwhile, thegovernment on Saturday extended the due date for linkingPAN or Permanent Account Numberwith Aadhaarby three months.A person not having a PAN furnishing Aadhaar for filing an income tax return "shall be deemed" to have applied for allotment of PAN, according to the Central Board of Direct Taxes (CBDT), the apex policymaking body for the Income Tax Department.
In other words, such persons will not be required to apply for a PAN or submit any more documents.
The rule has come into effect from September 1, according to the taxman.( :Aadhaar, PAN steps to expand tax base, say experts)The tax department will "obtain demographic information of an individual from the Unique Identification Authority of India (UIDAI)" for allotment of Permanent Account Number (PAN), according to a notification by the Income Tax Department.(Taxman to "suo motu" allot PAN to those only furnishing Aadhaar)The Aadhaar database contains details such as name, date of birth, gender, photo, address and biometrics of individuals.("Either Aadhaar or PAN will do")A PAN is a 10-digit alphanumeric number allotted by the Income Tax Department to entities such as persons and firms.Over 120 crore Aadhaar numbers have been issued in the country and about 41 crore PANs generated.Out of these, more than 22 crore PANs are linked with Aadhaar.(Aadhaar can be used for cash transactions aboveRs.50,000, says government)Currently, quoting of PAN is mandatory for cash transactions - such as hotel or foreign travel bills - exceeding Rs.
50,000.PAN is also mandatory on purchase of immovable property of over Rs.
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