24-Jan-2020 Quoting & Interchangeability Of Aadhaar Number

A new requirement under Income tax law to Quote Aadhaar number came with Finance Act 2017 with effect from 1st April 2017. All eligible person who is required to obtain Aadhaar shall require to quote his/her Aadhaar number on

i.             while making an application for getting permanent account number (PAN) or

ii.            in return for income

However, relief was given to those who do not hold Aadhaar but has made an application for Aadhaar and he/she has enrolment id of Aadhaar application. So for such class of person even quoting of enrolment id of Aadhaar application is also a sufficient compliance. 

Further, every person who was holding PAN as on 1st July 2017 and is also eligible to obtain Aadhaar number shall require to intimate his/her Aadhaar number to authority by linking PAN with Aadhaar by login on  https://www.incometaxindiaefiling.gov.in  under Profile setting -link Aadhaar option. It is a very easy process to link Aadhaar number over E-filing Portal. You just have to mention Name as per Aadhaar and date of birth or year as per mentioned over Aadhaar. 

Failure to intimate Aadhaar number through the above process, PAN allotted to such person shall be made inoperative after 31st March 2020. The date got extended from 31st December 2019. So non-intimation shall lead to De-activation of PAN. 

Every person who is required to furnish or intimate or quote his PAN &

i.             has not been allotted a PAN but possesses the Aadhaar number than in such the scenario he/she may furnish or intimate or quote his/her Aadhaar number in lieu of the PAN and such person shall be allotted a PAN by the authority on application.

ii.            has been allotted a PAN and the Aadhaar is intimated as supra then he/she may furnish or intimate or quote his Aadhaar number in lieu of the PAN. 

With interchangeability of PAN with Aadhaar number, one can quote your Aadhaar number in place of PAN and can file Income tax return and pay taxes, however, the current forms require modification to accept Aadhaar in place of PAN. 

Further Aadhaar number can also be quoted in place of PAN for

a.   sale or purchase of the motor vehicle,

b.   opening of bank account,

c.   opening of Demat account,

d.   payment in cash above Rs.50,000 in case of

i.     payment to hotel,

ii.    travel to any foreign country or purchase of foreign currency,

iii.   cash deposit in bank,

iv.  purchase of a bank draft. 

e.   aggregate payment above Rs.50000 for

i.     payment to a Mutual Fund for purchase of its units.

ii.    payment to a company or an institution for acquiring debentures or bonds issued by it

iii.   a time deposit 

f.     The payment as life insurance premium of an amount aggregating to more than fifty thousand rupees in a financial year.

g.   Sale or purchase, by any person, of shares of a company not listed in a recognized stock exchange of an amount exceeding one lakh rupees per transaction.

h.   Sale or purchase of any immovable property of amount exceeding ten lakh rupees

i.     Sale or purchase by any person of goods or services of an amount exceeding two lakh rupees per transaction

Further, the CBDT has acquired powers to notify such other transactions as they deem fit. 

So it is strongly advice to all income taxpayer who are eligible to obtain Aadhaar number or has Aadhaar number should intimate Aadhaar number to Income Tax authority his/her PAN through the above process and enjoy the benefit of interchangeability and re-activate your PAN for a lifetime.

Please feel free to write to us at info@apmh.in / ravi@apmh.in for any further queries on the above blog.