In Budget 2019, PAN-Aadhaar interchangeability was allowed through an amendment made in Section 139A of the Income-tax Act, 1961. Nonetheless, the amendment to put the changes into practice was still to be made. Now, the CBDT has amended the said rules after which an individual can use his or her aadhaar number in place of PAN in over 100 forms and returns.
For the same, the CBDT via a November 6 notification modified over 100 forms wherein individuals can now quote their aadhaar number in place of PAN.
So, here are provided places where one can give his or her aadhaar number in lieu of PAN:
1. Bank account opening: In accordance with the latest changes made in Rule 114B of the income tax laws, an individual is now allowed to open a new bank account using his or her aadhaar number in place of PAN. Notably, as know-your-customer (KYC) forms have not been modified, you would still need to provide your PAN for the KYC process.
2. In Form 15G/Form 15H to avoid higher TDS on interest income on deposits: Form 15G (individual)/ 15H (senior citizens) has also been amended via a notification dated November 6 and the changed forms allow quoting of either aadhaar or PAN. So, individuals to avoid higher TDS deduction on the interest income from deposits from this financial year can provide their aadhaar number in lieu of PAN to the bank.
Further, here it is important to mention that form 16A that is provided to you by your bank will show your aadhaar instead of PAN.
3. Landlord's aadhaar can be quoted to claim HRA exemption: The recently modified income tax law allows an individual to provide his or her landlord's aadhaar to the employer in place of PAN to claim HRA exemption. However, this is allowed only when the landlord has either linked his PAN with aadhaar or does not have a PAN as yet.
4. In investment declaration form 12BB submitted to the employer: An individual while submitting his investment declaration form to the employer to avoid higher tax deduction can now give his aadhaar in place of PAN along with proof of actual investments made. Do note that in such a case when your employer issues you form 16, it will show your aadhaar number in place of PAN.
5. For depositing TDS with the government against rent paid over Rs. 50,000 to the landlord: In such a case also you can quote your aadhaar number to deposit TDS with the govt. Here you would also be required to provide your landlord's aadhaar number in form 26QC. The TDS will be deducted at the rate of 5%. Again here Form 16C which is the TDS certificate will reflect your landlord's aadhaar number.
It is worth mentioning that in all such instances before you head on to give your aadhaar in place of PAN, do make it a point to link your aadhaar and PAN as without it you can be issued a second PAN which is against law.