The Income Tax department will allot fresh PAN to anyone who files IT returns with only Aadhaar, CBDT chairman Pramod Chandra Mody said after the Budget proposed that only the biometric ID was enough for tax purposes.
“In cases where Aadhaar is being quoted and PAN is not there, we could possibly think on the terms of allotting a PAN to the person (who is filing income tax return),” he told PTI in an interview.
The assessing officer of the department will use his powers to allot PAN to an entity, he said. “The law provides that the assessing officer can suo motu also allot PAN. So, if Aadhaar is being quoted without PAN, I give him the PAN. It becomes linked,” Mody said.
While presenting the first Budget of the second Narendra Modi government, Union Finance Minister Nirmala Sitharaman proposed to make the PAN card and Aadhaar interchangeable, effectively allowing those not possessing a PAN to file income tax returns by quoting their Aadhaar number. The proposal will come into effect on September 1. Prevailing income tax laws mandate tax filers to quote a PAN number.
When asked if the PAN will be eliminated, Mody said the interchangeability of the two databases was an “additional facility” to ensure their linkage, which is now mandatory under the law.
“PAN is certainly not dead. PAN is very much alive. It is just a question of providing an additional facility to the taxpayer that if he is not quoting PAN and only has Aadhaar, his filing and processes do not get affected,” Mody said.
While Aadhaar is issued by the Unique Identification Authority of India (UIDAI) to a resident, PAN is a 10-digit alphanumeric number allotted by the tax department to a person, firm or entity.
(Inputs from PTI)