#FinancialBytes: Now, use Aadhaar instead of PAN for these transactions
What's the story
Earlier this month, Union Finance Minister Nirmala Sitharaman presented her and the new Central government's first budget. Among other initiatives, the FM announced that Permanent Account Number (PAN) and Aadhaar number can now be used interchangeably. Here's a list of all the transactions for which you can now quote Aadhaar in place of PAN.
ITR
Filing I-T returns
According to new rules, you can now quote your Aadhaar number in place of PAN for the purpose of filing Income Tax returns. Previously, it was mandatory to furnish PAN details while filing your I-T returns. However, it is still necessary to link the two documents. Separately, the deadline to file I-T returns for FY 2018-19 is July 31, 2019. Hence, hurry up.
Information
Cash transactions of more than Rs. 50,000
Currently, PAN is mandatory for facilitating one-time cash transactions above Rs. 50,000 in connection with hotel/restaurant bill payments, abroad travel, buying foreign currency, and purchasing/selling financial instruments like mutual funds, debentures, bonds etc. Hence, you can now use your Aadhaar number for all these transactions.
Other transactions
Buying/selling immovable property, non two-wheeler vehicles; debit/credit card application
At present, it is mandatory to furnish PAN details for buying and selling immovable property worth more than Rs. 10 lakh. Also, PAN is necessary for buying and selling non two-wheeler vehicles. However, as per new rules, you can use your Aadhaar card to undergo these transactions. Aadhaar can also be used for debit/credit card application, instead of PAN card.
Linkage
Note: Your PAN will be deactivated if not linked
Further, according to reports, the government is planning to temporarily invalidate all PAN cards that are not linked with Aadhaar until August 31, 2019. The thought behind the move is that the government believes that if after so many extensions, your PAN is not yet linked with Aadhaar, its authenticity is questionable. Simply put, the government is skeptic that your PAN might be fake.
Online procedure
Here's how you can link your PAN with Aadhaar online
Meanwhile, to link Aadhaar with PAN via online mode, log on to the Income Tax e-portal. Next, under the 'Quick Links' section, click on 'Link Aadhaar.' Post that, enter details such as Aadhaar number, PAN, Name, and the screen-displayed Captcha code. Submit the details, click on 'Link Aadhaar', and you are done. After successful verification from UIDAI, the linkage will be confirmed.
Do you know?
You can also link your PAN with Aadhaar via SMS
Apart from the online method, users can also link their Aadhaar with PAN, using SMS service. To do so, type a text message in this format: UIDPAN (space) 12-digit Aadhaar number (space) 10-digit PAN, and send to 567678 or 56161 from your Aadhaar-registered mobile number.
Aadhaar status
Clearing the air around Aadhaar status
Post the September 26, 2018 Supreme Court verdict relating to authentication of Aadhaar, there has been much confusion with respect to services where Aadhaar is mandatory and where not. Aadhaar is no longer mandatory for services such as opening bank accounts, telecom services, and school admissions/entrance tests. However, it is still necessary for availing government welfare-schemes and filing I-T returns (if PAN isn't used).