New PAN card, Aadhaar rules: 5 things to know about the budget announcement

  • Those who do not have PAN card will be able to file ITR by quoting Aadhaar card number
  • Quoting and authentication of PAN/Aadhaar shall be mandatory for certain prescribed transactions

NEW DELHI: Under the new income tax rules, as announced in the Union Budget 2019 by Nirmala Sitharaman, PAN cards and Aadhaar cards will be made interchangeable soon. This means that taxpayers will need either Aadhaar card or PAN card to file their income tax returns (ITR). At present, you need to have both to file ITR.

1) “For ease and convenience of tax payers, 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,” Nirmala Sitharaman said in her budget speech.

2) According to the proposed rules, the Income Tax Department shall allot PAN to such person on the basis of Aadhaar after obtaining demographic data from the Unique Identification Authority of India (UIDAI).

3) If a taxpayer has already linked his Aadhaar with his PAN, he or she has the choice to use Aadhaar instead of PAN under the Income Tax Act.

4) The finance ministry has also taken another step to track high-value transactions by making it mandatory to provide the quoting and authentication of PAN/Aadhaar for certain prescribed transactions. The budget also introduced a provision that the person receiving relevant documents shall ensure correct quoting and authentication of PAN and Aadhaar for the prescribed transactions. To ensure compliance of these provisions it is also proposed to amend penalty provisions.

5) Presently, the Income Tax Act provides for making PAN invalid if it is not linked with Aadhaar within a specified date. The finance ministry has now taken a step to protect past transactions. In the budget it has been proposed that if a person fails to intimate the Aadhaar number, the PAN allotted to such person shall be made inoperative.

 

 

Source by

Leave a Reply

Your email address will not be published. Required fields are marked *