Quoting Aadhaar In Place Of PAN? Ensure This As Else You May Be In Trouble

In Union Budget 2019, the centre allowed quoting of aadhaar in place of PAN wherever PAN is to be mentioned mandatorily. But in such a case, there is a catch that you should know about:

On August 30, the Central Board of Taxes came up with another notification which said that if someone without a PAN card for undertaking a financial transaction quotes his or her aadhaar number then it shall be considered as an auto-application for PAN by the Income tax department and thereafter this individual will be issued a PAN card.

But in the other case, when you also hold PAN and despite having PAN you quote your aadhaar number, you need to necessarily link the 2 identification documents because of the aforesaid notification as per which you could be issued a second PAN which is against the ruling of income tax law.

One, income tax laws allow an individual to hold only a single PAN and if he or she is found to possess more than one PAN, then the assessing office can also levy a penalty of Rs. 10,000 under section 272B of the income tax Act. Also, linking of PAN with aadhaar has been made mandatory and the last date for the same is December 31, 2019.

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