Soon, you can get a Permanent Account Number (PAN) instantly on the basis of your Aadhaar number, without filling a detailed application form.
The finance minister, in her budget speech: “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 interportability of PAN and Aadhaar.
Parizad Sirwalla, Global Mobility Services-Tax, KPMG India says, “In another step, towards reducing human intervention and simplification, facility for faceless appeals, instant e-allotment of PAN basis Aadhaar and pre-filled income tax return forms will help everyone.”
The Central Board of Direct Taxes (CBDT), via a notification dated November 6, amended more than 100 forms where now an individual can quote his Aadhaar number in lieu of PAN, provided PAN is linked to Aadhaar number.
Interportability of PAN-Aadhaar
As announced in the July Budget 2019, Aadhaar number can be used in lieu of PAN (provided both are linked) whereever forms have been amended by the CBDT. However, there are certain isntance where still you have to provide your PAN. For instance, Chartered Account Naveen Wadhwa, DGM, Taxmann.com says, “The amendment in Rule 114B of the income tax laws allow an individual to use his/her Aadhaar number to open a bank account instead of PAN. However, know-your-customer (KYC) forms have not been amended by the government. Therefore, while opening a new bank account, as part of the KYC process, an individual will have to submit their PAN.”
Wadhwa further said, “The amended income tax law allows an individuals to quote their Aadhaar number in lieu of PAN where quoting of PAN is mandatory. The changes allow an individual to give their landlord’s Aadhaar number to the employer to claim HRA exemption, provided the landlord has either linked his Aadhaar with PAN or he has not obtained the PAN yet.”
Apart from this, you can submit Form 15G/ 15H to the bank using your Aadhaar number instead of PAN to the bank to avoid higher TDS on the interest income earned from a fixed deposit. Abhishek Soni, CEO and founder, Tax2win.in, an ITR filing website, says, “Notification dated November 6, 2019 has amended Form15G (Individuals)/Form 15H (senior citizens) which allows quoting of either Aadhaar number or PAN to avoid higher TDS in Form 15G/Form 15G. Therefore, to avoid higher TDS deduction from this financial year i.e. FY 2019-20, individuals and senior citizens can give Aadhaar number instead of PAN to their bank. However, do keep in mind that the Form 16A given to you by your bank will reflect your Aadhaar number instead of your PAN.”