New Delhi: Union minister Nirmala Sitharaman on Friday said Aadhaar and PAN or Permanent Account Number will be interchangeable when it comes to filing Income Tax returns. The new rule is expected to benefit entry-level tax payers who have Aadhaar but not PAN.
“More than 120 crore Indians now have Aadhaar card, therefore for ease of tax-payers, I propose to make PAN card and Aadhaar card interchangeable and allow those who don’t have PAN to file returns by simply quoting Aadhaar number. They would be able to use that wherever one is required to use PAN,” the minister said on Friday while presenting the Union budget in parliament.
PAN or Permanent Account Number has so far been mandatory for filing Income Tax Returns. After Aadhaar was introduced, it became mandatory to link PAN and Aadhaar for this purpose.
Even the Supreme Court, which ruled that Aadhaar could not be made mandatory for non-financial purposes, said Aadhaar-PAN link will be needed to file tax returns.
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