For These Tasks, You Will Be Able To Quote Aadhaar Instead Of PAN
A number of changes have been announced in rules related to the Unique Identity Number (UID) - also known as Aadhaar number - and the PAN or Permanent Account Number. While the government has allowed quoting of Aadhaar in place of PAN under the Income Tax Act, it has also announced grant of Aadhaar to NRIs on arrival without a waiting period. Meanwhile, the Income Tax Department has set a September 30 as the last date for assessees to link the two "unless specifically exempted". Of the over 41 crore PANs issued, 22 crore have been linked to Aadhaar. (Also read: PAN Aadhaar rules - 10 things to know about latest changes)
Here are some important things to know about the latest changes in the rules applicable to Aadhaar and PAN:
Filing of income tax return (ITR) with Aadhaar
Individuals not having a PAN will be able to quote Aadhaar instead while filing their income tax returns, as announced in the Budget. The government has said that Aadhaar will be accepted interchangeably with PAN under the Income Tax Act. (Also read: Aadhaar-PAN rules: Latest changes to expand tax base, say experts)
Cash transactions above Rs 50,000
Therefore, those making payments above Rs 50,000 in cash to a hotel or restaurant against a bill at any one time will be able to quote Aadhaar - or the 12-digit Unique Identity Number (UID) - instead of PAN. Currently, furnishing of PAN is mandatory for such dealings as per income tax rules. (Also read: "Either Aadhaar or PAN will do")
Besides, payments above Rs 50,000 in cash in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time currently require furnishing of PAN.
Also, such payments to a mutual fund for purchase of units, a company/institution for buying debentures/bonds, and the RBI for acquiring bonds also require PAN at present.
Buying property above Rs 10 lakh
Those purchasing immovable property worth more than 10 lakh will also be able to quote Aadhaar instead of PAN. Currently, furnishing of PAN is mandatory for property transactions above Rs 10 lakh.
Car sale/purchase
Currently, sale or purchase of a motor vehicle other than two-wheelers requires mandatory furnishing of PAN. Therefore, quoting of Aadhaar will be allowed interchangeably with PAN in this case as well.
Demat account application
Currently, PAN is also required for opening of a demat account. Therefore, Aadhaar will be accepted for opening such an account with a depository, participant, custodian of securities or any other person with market regulator Sebi.
Debit/credit card application
Aadhaar will also be accepted instead of PAN for making an application for a credit or debit card.
Aadhaar for NRIs
In its Budget, the government has also proposed to consider issuance of Aadhar card to NRIs with Indian passports on arrival in the country without a mandatory waiting-period of 180 days. (Also read: Aadhaar can be used for cash transactions above Rs 50,000, says government)
(With agency inputs)