INSUBCONTINENT EXCLUSIVE:
Aadhaar-PAN linking: The taxman has set a due date of September 30 for assessees to link the two numbers
In Budget 2019, the government has proposed to provide "interchangeability of PAN (Permanent Account Number) and Aadhaar" to enable
individual assessees to file income tax returns (ITR)
The Unique Identity Number (UID) or Aadhaar number is a 12-digit identification number issued by the UIDAI or Unique Identification
Authority of India under its biometrics-based personal identification programme Aadhaar, whereas the PAN is a 10-digit alphanumeric number
issued by the Income Tax Department
Tax experts say that the announcements on PAN will lead to a stronger taxpayer base
Here are 10 things to know about the interchangeability of PAN and Aadhaar announced by the government in the Budget
2019:Finance Minister Nirmala Sitharaman, while presenting the Budget in Parliament on July 5, said more than 120 crore citizens of the
"Therefore, for ease and convenience of taxpayers, I propose to make PAN and Aadhaar interchangeable," she said.She also said that
individuals not having PAN will be allowed to file income tax returns "by simply quoting their Aadhaar number"
The assessees will also be able to quote Aadhaar wherever they are required to furnish PAN.This means that the taxpayer will have the option
to furnish Aadhaar under the Income Tax Act wherever quoting of the PAN is required.The Income Tax Department will allot PAN to such
individuals - who do not have a PAN and choose to quote Aadhaar instead
In other words, the taxman will obtain demographic data from the UIDAI to issue a PAN to such individuals.Additionally, individuals with
their Aadhaar linked to their PAN will also get the option of using Aadhaar in place of PAN under the I-T Act.Tax experts say that such
interchangeability may not mean that PAN is on longer required."If Aadhaar furnished by a person who already has a PAN it will be linked to
For people who don't have a PAN, based on Aadhaar, their PAN will be issued as soon as possible and sent to him/her," said Amit Maheshwari,
Partner, Ashok Maheshwary - Associates LLP."This will be interesting for high value transactions where PAN has to be quoted
also proposed quoting of PAN or Aadhaar on a mandatory basis for high value transactions.Meanwhile, the Income Tax Department earlier this
year extended the due date for assessees to link their Aadhaar with PAN to September 30
The Central Board of Direct Taxes (CBDT) - the apex policymaking body of the Income Tax Department - has said that "unless specifically
exempted", the cut-off date for intimating Aadhaar and linking it with PAN is September 30
Previously, the taxman had set March 31 as the due date for PAN holders required to file an income tax return to seed their Aadhaar
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