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‘PAN to be generated automatically if Aadhaar is used for filing returns’

CBDT chairman P C Mody had said in July that the department would “suo motu” allot a fresh PAN to a person who files I-T returns (ITR) with only Aadhaar as part of a new arrangement to link the two databases.

By: ENS Economic Bureau | New Delhi |
Updated: September 3, 2019 5:09:15 am
The CBDT frames policy for the tax department.

The Income Tax Department will automatically issue PAN to taxpayers who use their Aadhaar number for filing returns, as part of a new arrangement to link the two databases.

According to a notification by the Central Board of Direct Taxes (CBDT) on August 30, a person who furnishes Aadhaar, as they do not have PAN, “shall be deemed” to have applied for allotment of PAN and they will not be required to apply or submit any more documents.

It said the rule has come into effect from September 1.

The notification added that the department will “obtain demographic information of an individual from the Unique Identification Authority of India (UIDAI)” for allotment of Permanent Account Number (PAN), a ten-digit alphanumeric identifier issued by it.

The CBDT frames policy for the tax department.

CBDT chairman P C Mody had said in July that the department would “suo motu” allot a fresh PAN to a person who files I-T returns (ITR) with only Aadhaar as part of a new arrangement to link the two databases.

“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).

“The law provides that the assessing officer can suo motu allot PAN. So, if Aadhaar is being quoted without PAN, I give him the PAN. It becomes linked,” he CBDT chairman had said

Mody was also asked whether the I-T Department-issued PAN will be dead, after Finance Minister Nirmala Sitharaman in her July 5 Budget speech 5 announced that PAN and Aadhaar are being made interchangeable as the government will allow those who do not have PAN to file I-T returns by simply quoting their Aadhaar number and use it wherever they are required to quote PAN.

He replied that linking of the two databases is now mandatory and backed by law.

While UIDAI issues Aadhaar to a resident, PAN is a 10-digit alphanumeric number allotted by the tax department to an individual, company or entity.

Aadhaar contains all vital information of an individual such as name, date of birth, gender, photo and address, as well as biometrics. The same set of information is required to get a new PAN.

As per data, more than 120 crore Aadhaar numbers have been issued across the country and nearly 41 crore PAN numbers have been generated.

Of these, more than 22 crore PANs are linked with Aadhaar.

Section 139 AA (2) of the Income-tax Act stipulates that every person with a PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate their Aadhaar number to tax authorities.

After the Supreme Court upheld the section 139AA, the government in March this year announced that the deadline for linking PAN-Aadhaar was September 30.

In September last, the apex court had declared the Centre’s flagship Aadhaar scheme was constitutionally valid and held that the biometric ID would remain compulsory for filing of ITR and allotment of PAN.

The latest notification said the tax department will be “responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing or intimation or quoting or authentication of Aadhaar number or obtaining of demographic information of an individual from the UIDAI, for allotment of permanent account number and issue thereof”. WITH PTI

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