Now to ease the process for the taxpayer as well as for the tax administration, Budget 2020-21 presented on February 1, 2020 announced the furnishing of instant Permanent Account Number (PAN) online based on aadhaar details.
This way individual or other entity willing to obtain a PAN card will be saved from the earlier required task of filling the PAN application form and submitting it with the tax authorities for issuance of the same. Also, at the same time, the department will also be able to eliminate the time, cost and effort involved in sending physical copies of PAN at the applicant's residential address.
This is aimed at to further ease the process of issuance of PAN which is rather used in most of the day to day transactions as an important identity proof.
Procedure to get ePAN based on Aadhaar
1. For the same, individual or other entity needs to visit the income tax website and enter in their aadhaar details.
2. In the next step, for the verification of applicant's aadhaar details, he or she will receive a one-time password or OTP on his aadhaar registered mobile number.
3. As and when you key in the OTP and aadhaar details are verified successfully, instant e-PAN will be allotted.
4. Henceforth, the user can download the instant e-PAN.
From when will the issuance of e-PAN start: On this Revenue Secretary Ajay Bhushan Pandey told PTI "System is getting ready. So this month itself".
Aadhaar and PAN linkage has been further extended to March 31, 2020 and as on January 27, 2020, there are still more than 17.58 crore PANs that are yet to be linked with Aadhaar.
As per a PTI report, 30.75 crore PANs have already been linked to Aadhaar.
Taxpayer Charter: On the sidelines, Pandey also spoke about the Taxpayer Charter that found its place in the Union Budget for FY2021. He added that as the current tax laws primarily focus on the taxpayers obligation, the charter will also list out the same in respect of tax administration and if they are found to err on the same they will be penalized.
"The whole purpose is 'we should have a trust-based system' where the honest taxpayers should not be harassed, we should have a minimal manual interface, most of the problem should be solved online, the whole system should be very very simple. We made assessment faceless, now appeals faceless, we are moving in that direction," Pandey said.
In her Budget speech Nirmala Sitharaman said, "We wish to enshrine in the statutes a 'taxpayer charter' through this budget. Our government would like to reassure taxpayers that we remain committed to taking measures so that our citizens are free from harassment of any kind".
"Wealth creators will be respected in this country and to ensure ease of living and ease of doing business it is essential to have fairness and efficiency of tax administration", added the minister.