shayarisms4lovers June18 199 - Union Budget 2019: New PAN Card and Aadhar Card Rules

Union Budget 2019: New PAN Card and Aadhar Card Rules

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Under the new income tax rules, Finance Minister, Nirmala Sitharaman, announced new PAN Card and Aadhar Card rules. PAN cards and Aadhaar cards will be made interchangeable soon. This means that taxpayers will need either an Aadhaar card or PAN card to file their income tax returns (ITR). At present, you need to have both to file ITR. In her Budget speech, last Friday she had announced that taxpayers who don’t own a PAN card (Permanent Account Number) can now file Income Tax returns with their Aadhaar Card also. The FM allowed the interchangeability of PAN and Aadhaar card for filing tax returns.

“More than 120 crore Indians now have Aadhaar card, therefore for ease and convenience of taxpayers I propose to make PAN and Aadhar 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,” the Finance Minister had said in her Union Budget 2019 speech.

pana - Union Budget 2019: New PAN Card and Aadhar Card Rules

New PAN Card and Aadhar Card 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).
  • If a taxpayer has already linked his Aadhaar with his PAN, he or she has the choice to use, Aadhar instead of PAN under the Income Tax Act.
  • Banks and other institutions will make backend upgrades to allow acceptance of Aadhaar in all places where quoting PAN is now mandatory, Revenue Secretary Ajay Bhushan Pandey told PTI. This follows the Budget allowing interchangeability of PAN and Aadhaar for ease of compliance of taxpayers.
  • India’s national biometric ID Aadhaar can now be quoted for cash transactions of more than Rs 50,000 and all other purposes where traditionally income tax PAN was a must.
  • 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.
  • Once this proposal gets approval in the parliament, individuals will be able to use Aadhaar cards instead of PAN cards to conduct financial transactions, for instance, mutual fund investments, buying gold, and others. The move is aimed at improving tax compliance and ease the process of tax payment for taxpayers.
  • Section 139 AA (2) of the Income Tax Act says that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities.
  • After the Supreme Court upheld Section 139AA of the I-T Act, the government in March extended the deadline for linking PAN with biometric ID Aadhaar by six months till September 30.
  • However, quoting of Aadhaar is mandatory for filing income tax returns (ITRs), following the Supreme Court order.
  • The apex court, in September last year, had declared the Centre’s flagship Aadhaar scheme as constitutionally valid and held that the biometric ID would remain mandatory for filing of I-T returns and allotment of PAN.
  • Aadhaar is a 12-digit number issued by the Unique Identification Authority of India (UIDAI) issued to the residents of India. It is backed by biometric data of individuals.