If you file your income tax return using Aadhaar, the income tax department will automatically issue a Permanent Account Number (PAN) to you.
The Finance Minister had in the Union Budget 2019 announced the facility of filing income tax returns using Aadhaar. The Finance Minister has also announced the interchangeability of PAN and Aadhaar to file an income tax return.
The Finance Minister had said in her budget speech “…more than 120 Crore Indians now have Aadhaar. Therefore, for ease and convenience of taxpayers, I propose to make PAN and Aadhaar interchangeable and allow those who do not have PAN to file Income Tax returns by simply quoting their Aadhaar number and also use it wherever they are required to quote PAN”.
The income tax department has recently issued a notification in respect of taxpayers who have quoted Aadhaar number in place of PAN. It states that such taxpayers would be allotted PAN based on their Aadhaar data. The taxpayer would not be required to apply for PAN or submit any documents under this rule.
In this situation, the income tax department will obtain demographic information from the Unique Identification Authority of India (UIDAI) and automatically issue PAN to the taxpayer.
Also, from 1 September 2019, taxpayers will be allowed to quote Aadhaar in place of PAN in various financial transactions. Such taxpayers would automatically receive PAN.
The notification also mentions that the income tax department would allot a PAN, based on Aadhaar. Such a person is not required to furnish any documents for making the application.
The deadline for linking PAN and Aadhaar is 30 September 2019.
I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.