NEW DELHI: India’s nationwide biometric ID Aadhaar can now be quoted for money transactions of extra than Rs 50,000 and all diverse capabilities where historically earnings tax PAN number was a must, per a top legitimate.
Banks and diverse institutions will catch backend upgrades to enable acceptance of Aadhaar all over the place where quoting PAN is now main, earnings secretary Ajay Bhushan Pandey said Saturday.
This follows the Price range allowing interchangeability of PAN and Aadhaar for ease of compliance of taxpayers.
“This day you may per chance perhaps have 22 crore PAN cards which can be linked to Aadhaar. You have gotten extra than 120 crore of us that have Aadhaar. Then supposing anyone desires PAN, he has to first employ Aadhaar, generate PAN after which commence the usage of it. With Aadhaar the help can be he now does no longer wish to generate PAN. So right here’s a mammoth convenience,” he said.
Asked if Aadhaar will be earlier for deposit or withdrawal of cash worth extra than Rs 50,000 from financial institution accounts moderately than PAN, Pandey said, “There furthermore you may per chance perhaps employ Aadhaar”.
In uncover to curb unlit money, quoting of PAN is main for money transactions, such as resort or a ways off places fade funds, exceeding Rs 50,000. PAN is furthermore main on bewitch of immovable property of over Rs 10 lakh.
While Aadhaar is backed by biometric info of individuals, there have been plenty of conditions of of us quoting a depraved PAN or obtaining a PAN number fraudulently.
On whether or no longer PAN will be phased out, he said that will per chance perhaps well no longer happen as of us would have a possibility to both quote Everlasting Legend Amount (PAN) or Aadhaar wherever required.
“Because there are some of us that are ecstatic on PAN,” he said. “So PAN and Aadhaar each will exist because some of us may per chance perhaps well also grab to employ Aadhaar, some of us may per chance perhaps well also grab to employ PAN. But at the motivate discontinue, for every PAN there will be an Aadhaar.”
Finance minister Nirmala Sitharaman in her Price range speech on Friday said for the convenience and convenience of tax payers, “I propose to catch PAN and Aadhaar interchangeable and enable of us that discontinue no longer have PAN to file Profits Tax returns by simply quoting their Aadhaar number and furthermore employ it wherever they are required to quote PAN.”
Of the over 41 crore PANs issued, 22 crore have been linked to Aadhaar.
Share 139 AA (2) of the Profits Tax Act says that every person having PAN as on July 1, 2017, and eligible to kind Aadhaar, must intimate his Aadhaar number to the tax authorities.
After the Supreme Courtroom upheld Share 139AA of the I-T Act, the authorities in March prolonged the cut-off date for linking PAN with biometric ID Aadhaar by six months till September 30.
Nonetheless, quoting of Aadhaar is main for submitting earnings tax returns (ITRs), following the Supreme Courtroom uncover.
The apex court, in September closing year, had declared the Centre’s flagship Aadhaar diagram as constitutionally legitimate and held that the biometric ID would remain main for submitting of I-T returns and share of PAN.
A five-grab constitution bench had, nevertheless, said that it can per chance perhaps well no longer be main to hyperlink Aadhaar to financial institution accounts and telecom service services can no longer see its linking for cellular connections.