In her maiden Budget speech, Nirmala Sitharaman announced that PAN and Aadhaar cards can be used interchangeably soon. Currently, both PAN and Aadhaar are required to file ITR. But soon individuals will be able to file tax returns using either Aadhaar card or PAN card.
Here's all you should know on the new rules:
1. In her budget speech, the FM 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. Under the Income Tax Act, if a taxpayer has linked his Aadhaar and PAN then he or she can voluntarily use Aadhaar in place of PAN.
3. Also, as per the proposal made, the department of Income tax will issue PAN to persons with Aadhaar after getting their demographic details from the UIDAI.
4. To track high-value transaction, the ministry of finance has made it mandatory to quote and provide for authentication in respect of PAN or Aadhaar for some of the prescribed transactions. Also, for adherence to these rules, there has been made a proposal to amend penalty provisions.
5. In the budget, there has been made a proposal that if a person fails to provide his or her aadhaar number, the PAN allotted to such a person will be rendered inoperative.