The Union Finance Minister Nirmala Sitharaman proposes to make Permanent Account Number (PAN) and Aadhaar interchangeable. As per the announcement, individuals who do not have PAN will soon be able to file their income tax return (ITR) just by quoting their Aadhaar number.
In addition to that, those who do not have PAN can simply quote their Aadhaar number wherever PAN is mandatory to quote. Once the proposal is passed by the parliament, individuals will be able to use the Aadhaar card instead of PAN to conduct various financial transactions such as investing in MFs, buying gold and motor vehicles, etc. It is aimed at improving tax compliance and to make the life of the taxpayer simpler.
As per current income tax laws, it is mandatory to quote PAN number without which ITR cannot be filed. In addition to that with effect from April 1, 2019 it is mandatory to quote Aadhaar number and link the same with PAN while filing ITR.
In her maiden Budget speech today said the Indian economy had reached from $1.85 trillion to $2.7 trillion, and that the Centre had the target of taking it to $5 trillion by Financial Year of 2025.
Sitharaman said investment-driven growth is a must in India as the country required Rs 20 lakh crore worth investment per year.
The first full-time woman finance minister announced sops for Micro, Small and Medium Enterprises (MSMEs) and said Rs 350 crore will be allocated for the sector. Sitharaman also announced that the pension benefits would be extended to 3 crore retail traders under the Pardhan Mantri Karam Yogi Maan Dhan Yojana.