Budget 2019 makes PAN and Aadhaar interchangeable; here is how it will help tax payers; know these 5 key points
Budget 2019: 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. Now what does this mean to a common man.
Budget 2019: 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. Now what does this mean to a common man. The taxpayers will need to use either Aadhaar card or PAN card to file their income tax returns (ITR) from now onwards. At present, you need to have both to file ITR. The government has already made it mandatory to link PAN and Aadhaar, while the Budget 2019 now makes it clearer to people.
Here are the 5 key points you should know about how PAN and Aadhaar interchangeable will help you as a tax payer.
1) Filling ITR quoting Aadhaar number
FM Nirmala Sitharaman in her budget speech said,"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."
2) New rule for issuance of PAN card
Now the Income Tax Department will not allot PAN to such person who does not have Aadhaar card after obtaining demographic data from the Unique Identification Authority of India (UIDAI).
3) Use either document to file ITR
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) Tracking of high value transactions
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 provision that the person receiving relevant documents shall ensure correct quoting and authentication of PAN and Aadhaar for the prescribed transactions.
5) PAN Aadhaar linking is mandatory
At present, 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.
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