Budget 2019: Do not forget these 3 new rules proposed for Aadhaar card, PAN card - From interchangeability to linking
If you are a taxpayer, then you must know these three new proposed rules in regards to Aadhaar card and PAN card as laid out by FM Sitharaman.
Apart from Income Tax Return (ITR) filing, to further ensure accurate tax payment and income reporting, Finance Minister Nirmala Sitharaman proposed three major rules with regard to Aadhaar card and Permanent Account Number (PAN) card. Citizens have been encouraged to opt for their own Aadhaar card, as the biometric is a vital identity proof to get various services. Even for application of a PAN card, one must have an Aadhaar card! Also, September 2019 date is set as last day to link Aadhaar card with PAN. If you are a taxpayer, then you must know these three new proposed rules in regards to Aadhaar card and PAN card laid out by FM Sitharaman.
Interchangeability of PAN and Aadhaar: It is proposed to provide interchangeability of PAN and Aadhaar to enable a person who does not have PAN but has Aadhaar to use Aadhaar in place of PAN under the Act. 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). It is also proposed to provide that a person who has already linked his Aadhaar with his PAN may at his option use Aadhaar in place of PAN under the Act.
On interchangeability, Bhavin Turakhia, co-founder & CEO, Zeta said, "The Government of India has made a much-needed move for working professionals by bringing in ease and convenience by proposing to make PAN and Aadhaar interchangeable along with making them available with pre-filled tax returns which aims to reduce the time taken to file a tax return as well as enable accurate reporting of income and taxes. The digital push also reflects in the tax filing process as with the launch of a scheme of faceless assessment in electronic mode involving no human interface. The government has introduced several measures that are in line with the ‘Digital India’ vision and we welcome the same.”
Quoting of PAN/Aadhaar: In order to track high value transactions, it is proposed to provide that the quoting and authentication of PAN/Aadhaar shall be mandatory for certain prescribed transactions. It is also proposed to provide that the person receiving relevant documents shall ensure correct quoting and authentication of PAN/Aadhaar for the prescribed transactions. To ensure compliance of these provisions it is also proposed to amend the relevant penalty provisions.
Consequences of not linking Aadhaar with PAN: Presently, the Act provides for making PAN invalid if it is not linked with Aadhaar within a notified date. In order to protect past transactions carried out through such PAN, it is proposed to provide that if a person fails to intimate the Aadhaar number, the PAN allotted to such person shall be made inoperative in the prescribed manner after the date notified for the said linking.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.