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Situations Where You Can Now Quote Aadhaar In Place Of PAN

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In Budget 2019 presented on July 5, the Finance Minister Nirmala Sitharaman announced a slew of changes in respect of PAN, aadhaar, cash transactions, ITR filing to render more transparency in the system and check illicit practices and simultaneously curb tax evasion. The FM proposed that now on PAN and Aadhaar- the unique ID issued by UIDAI can be used interchangeably for filing tax returns.

 Situations Where You Can Now Quote Aadhaar In Place Of PAN
 

Places or Situations where you can quote Aadhaar instead of PAN

So here is given a list of all such situations or places, where you still can manage your task just by owning an Aadhaar ID i.e. without the need to mandatorily quote PAN or permanent account number.

1. ITR filing is now possible with just Aadhaar: So, people who do not have the PAN number issued by the income tax department can still be able to file their income tax return by just providing their unique aadhaar number. This comes after the government's proposal that allows use of PAN and aadhaar interchangeably. Hence aadhaar card can be used wherever PAN is needed.

The proposal has been made to make the adherence to compliances involved simpler as well as ease the whole process of tax filing.

Also, CBDT for those who file ITR using just aadhaar will "suo moto" issue a fresh PAN card. This will as part of the arrangement to link the two databases.

2. For cash transaction over Rs. 50,000: For all the transactions that initially required quoting of PAN compulsorily, now in its place aadhaar can be used. So, a person without PAN can quote his or her aadhaar ID for a cash transaction over Rs. 50,000. Hence for the same, the different institutional set-ups will upgrade their back-end such that aadhaar can now be accepted in all places where PAN was a must.

 

3. For cash deposit or withdrawal of over Rs. 50,000 from banks: As both these independent IDs can be used interchangeably, users can show them for withdrawing or depositing cash in bank or other financial entities.

Places where quoting of PAN is still must

Despite the relaxation of use of PAN and aadhaar interchangeably, there remain few instances where quoting of PAN is still must:

1. Cash transactions in respect of hotel bills valued at over Rs. 50,000

2. For foreign travel bills worth more than Rs. 50,000

3. Purchase of immovable property valued in excess of Rs. 10 lakh.

Also, it is to be noted that while the news report of PAN and aadhaar linking to be done by August 31, 2019 is doing the rounds. Revenue Secretary Ajay Bhushan Pandey has reiterated that PAN shall not be terminated in a case if not linked to aadhaar as people now on have an option of using either PAN or aadhaar.

Union Budget 2019 in this regard however suggested that, ""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."

GoodReturns.in

Read more about: pan aadhaar itr immovable property
Story first published: Thursday, July 18, 2019, 12:00 [IST]
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