Income Tax Forms amended the word substituted with PAN or Aadhaar

Income Tax Forms amended the word substituted with PAN or Aadhaar

Income Tax Forms amended; the word ‘PAN’ substituted with ‘PAN or Aadhaar’

The Word "PAN" has been substituted by "PAN" or "Aadhaar Number" in the Entire Income Tax Laws.

In a Notification No. 95/2019 made on 7th November 2019, it has been stated that more than Hundreds of Forms, Statements, Audit Reports formats were updated in order to give effect relating to the matter that wherever the word Permanent Account Number "(PAN)" would be mentioned, it shall be Substituted by the Words, "PAN" or "Aadhaar Number".

Basically, now 100% compliances under Income Tax Laws could be completed with Aadhaar Number of the Taxpayer in case the taxpayer doesn’t have the PAN Number.

To make certain IT compliance by making use of Aadhaar Number even in absence of PAN, CBDT had amended various Forms under Income Tax Rules in order to substitute the words ‘Permanent Account No.’ with the words ‘Permanent Account Number or Aadhaar Number’, with retrospective effect from 1st September 2019.

However, the interchangeability of Permanent Account Number (PAN) and Aadhaar was notified by the government which shall be effective from 1st September, where either PAN or Aadhaar Number could be utilized in the various forms that are used for income tax purposes. Previously, in the Budget 2019, the Union Minister of Finance Nirmala Sitharaman had proposed to make the utilization of PAN and Aadhaar interchangeable. The Finance Ministry had issued a notification No. 95/2019 Income Tax dated on 6th November 2019 stated that in order to exercise the powers that are conferred by section 139A, along with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes had made the following rules towards amending the Income-tax Rules, 1962.

The government had also carried amendments in the several sets of income tax forms as well as also certified that no individual is being adversely affected by means of giving retrospective effect towards these amendment rules.

The interchangeability could be understood that from now on if the taxpayer doesn’t have PAN, the taxpayer could provide the Aadhaar number. For common taxpayers, this implies that for filing of income tax return (ITR) without PAN shall become easier by quoting the Aadhaar Number. Aadhaar could be substituted with PAN wherever the former is to be specified to be compulsorily.

It is compulsory to file the ITR if the overall income goes beyond the basic exemption limit in a fiscal year. The new rule made it simple to substitute PAN with Aadhaar number where the PAN is to be compulsorily required. Not just at the time of filing of ITR, also the PAN is compulsorily required to be mentioned in the case of some high-value transactions made by the individual or while depositing money in the bank or making deposits beyond a certain limit as well as for some other monetary transactions.

The rules towards amending the Income-tax Rules, 1962 shall be applicable to several forms for instance Form number. 3AC, 3AD, 8, 10CCB, 10CCBA, 10CCBB, 10CCBBA, 10CCBC and etc, as well as for the words and letters ‘Permanent Account No.’, where they occur, the words ‘Permanent Account Number or Aadhaar Number would be substituted.

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