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

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  • 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.

“More than 120 crore Indians now have Aadhaar card, therefore for ease of taxpayers I propose to make PAN card and Aadhaar card interchangeable and allow those who don’t have PAN to file returns by simply quoting Aadhaar number and use it wherever they require to use PAN,” she said in the Lok Sabha.

The Union Minister also said that faceless and anonymous assessment system for income tax will be rolled out in phases this year.

While PAN is used to ensure that every citizen pays their taxes, an Aadhaar Card is a unique identification (UID) number issued by the government.

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