The Central Board of Direct Taxes (CBDT) has enabled the instant Permanent Account Number (PAN) through Aadhaar in Income Tax website.
The Union Government had proposed a new system to allot PAN online on the basis of Aadhaar in Union Budget 2020. The CBDT on 13th February 2020 enables instant PAN through aadhaar. Aadhaar has been made mandatory for applying for permanent account number with effect from July 1, 2017. Reportedly, the department, till now, has linked over 1.18 Aadhaar with its PAN database.
Since last year, PAN and Aadhaar cards have been made interchangeable for income tax purposes. It is also mandatory for you to link your PAN with Aadhaar card within March 31, 2020.
The move is however made in furtherance to the 2019 Budget wherein Permanent Account Number (PAN) and Aadhaar were proposed to be made interchangeable. It was proposed that the individuals without a PAN would be able to file their Income Tax returns just by quoting their Aadhaar number and vice versa.
Presenting Union Budget 2020, Finance Minister Nirmala Sitharaman said that Aadhaar-based verification of taxpayers is also being introduced. For ease and convenience of taxpayers, she said a system will be launched soon, for instant online allotment of PAN on the basis of Aadhaar, without the need for filing an application form.
The Finance Minister Nirmala Sitharaman also said that “In the last Budget, I had introduced the interchangeability of PAN and Aadhaar for which necessary rules were already notified. In order to further ease the process of allotment of PAN, soon we will launch a system under which PAN shall be instantly allotted online on the basis of Aadhaar without any requirement for filling up of detailed application form.” This is another step in achieving inter portability of PAN and Aadhaar.
