In her first Union Budget presentation on 5 July, Finance Minister Nirmala Sitharaman proposed the use of Aadhaar in place of PAN at the time of ITR (income tax return) filing, for those that do not have a PAN.

In accordance with her statement, the Central Board of Direct Taxes (CBDT) in a recent notification, said that when a person quotes his/her Aadhaar in the ITR, he/she will be deemed to have applied for PAN without having to submit additional documents.

Further, the new rules become effective from 1 September 2019.

The notification dated 30 August said, "(1A) Any person, who has not been allotted a permanent account number but possesses the Aadhaar number and has furnished or intimated or quoted his Aadhaar number in lieu of the permanent account number in accordance with sub-section (5E) of section 139A, shall be deemed to have applied for allotment of permanent account number and he shall not be required to apply or submit any documents under this rule.

(1B) Any person, who has not been allotted a permanent account number but possesses the Aadhaar number may apply for allotment of the permanent account number under sub-section (1) or sub-section (1A) or sub-section (3) of section 139A to the authorities mentioned in sub-rule (2) by intimating his Aadhaar number and he shall not be required to apply or submit any documents under this rule."

Also, after the Supreme Court upheld the section 139AA, the deadline to link PAN and Aadhaar was extended by the government to 30 September.