Aadhaar holders without PAN to be auto-applied for PAN from Sept 1
If you do not have PAN but have Aadhaarand have quoted your Aadhaar number for specified transactions, then as per the latest amendment, you will be deemed to have applied for PAN and you will not be required to submit any additional documents.
Also, applying for PAN has become easier if you have Aadhaar number. You can simply apply for PAN by just using your Aadhaar without submitting any additional documents.
The latest notification issued by the Central Board of Direct Taxes (CBDT) on August 30, 2019 says, ” (1A) Any person, who has not been allotted a permanent account number but possesses the Aadhaar number and has furnished or intimated or quoted his Aadhaar number in lieu of the permanent account number in accordance with sub-section (5E) of section 139A, shall be deemed to have applied for allotment of permanent account number and he shall not be required to apply or submit any documents under this rule.
(1B) Any person, who has not been allotted a permanent account number but possesses the Aadhaar number may apply for allotment of the permanent account number under sub-section (1) or sub-section (1A) or sub-section (3) of section 139A to the authorities mentioned in sub-rule (2) by intimating his Aadhaar number and he shall not be required to apply or submit any documents under this rule.”
As per the notification, the new rules regarding the allotment of PAN and quoting of Aadhaar number instead of PAN have come into effect from September 1, 2019.
However, as per the notification, you may have to authenticate your Aadhaar number in that case.
The latest amendment further suggests that the income tax department will specify the format and procedure for: Quoting of Aadhaar number in case you do not have a PAN; Applying for PAN just by using your Aadhaar; Authenticating your Aadhaar number for this purpose.
The budget presented in July 2019 allowed PAN-Aadhaar interchangeability. As per the budget announcement, individuals who do not have PAN can simply quote their Aadhaar number wherever PAN is mandatorily required to be quoted.
As per the sub-section (5E) of section 139A of the Income Tax Act:
Notwithstanding anything contained in this Act, every person who is required to furnish or intimate or quote his permanent account number under this Act, and who,-
(a) Has not been allotted a permanent account number but possesses the Aadhaar number, may furnish or intimate or quote his Aadhaar number in lieu of the permanent account number, and such person shall be allotted a permanent account number in such manner as may be prescribed;
(b) Has been allotted a permanent account number, and who has intimated his Aadhaar number in accordance with provisions of sub-section (2) of section 139AA, may furnish or intimate or quote his Aadhaar number in lieu of the permanent account number.
Earlier, PTI had reported CBDT Chairman P C Mody saying 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,” the CBDT chairman had said.