As Centre pushes the use of 12-digit identity project, Permanent account numbers (PAN) not linked to Aadhaar cards could be invalid after December 31.
According to the existing rule, all taxpayers need to have a PAN number to file income tax return but others outside this category, such as students outside the tax bracket, also use the card as a proof of identity.
Government records suggest that more than 1.08 billion Indians have the unique identification number.
Over the past few years, the Centre has linked Aadhaar to several subsidies and schemes, such as the mid-day meal.
Recently, Centre made Aadhaar number mandatory for filing income tax returns or applying for a PAN card.
According to the amendments in the finance bill, taxpayers can’t file income tax returns from July 1 if they fail to quote the Aadhaar number or show proof of having applied for the document, reported the Hindustan Times.
At present, there are 250 million PAN cards that are mandatory for cash transactions of hotel or travel bills exceeding Rs 50,000. It is also mandatory to quote the number for purchase of jewellery above Rs two lakh either in cash or by plastic money, and while making large deposits in banks.
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
