Must Know! Aadhaar Card can be used in place of PAN card for huge cash transactions
The banks and other offices will make backend upgrade allowing acceptance of Aadhaar card in all places where quoting PAN is now mandatory, Revenue Secretary Ajay Bhushan Pandey said Saturday.
This follows the Budget allowing interchangeability of PAN and Aadhaar for ease of compliance of taxpayers.
"Today you have 22 crore PAN cards which are linked to Aadhaar. You have more than 120 crore people who have Aadhaar. Then supposing somebody wants PAN, he has to first use Aadhaar, generate PAN and then start using it. With Aadhaar the advantage would be he now does not have to generate PAN. So this is a great convenience," he said.
Mr. Pandey also mentioned that people can now use their Aadhaar card for cash deposit or withdrawal from the bank.
In order to curb black money, quoting of PAN is mandatory for cash transactions, such as hotel or foreign travel bills, exceeding Rs 50,000. PAN is also mandatory on purchase of immovable property of over Rs 10 lakh.
There were speculations that with move, PAN card will soon be phased out. Clarifying it, he said, "Because there are some people who are comfortable on PAN, both will exist because some people may prefer to use Aadhaar, some people may prefer to use PAN. But at the back end, for every PAN there will be an Aadhaar."
Finance Minister Nirmala Sitharaman in her Budget speech on Friday said for the ease and convenience of tax payers, "I propose to make PAN and Aadhaar interchangeable and allow those who do not have PAN to file Income Tax returns by simply quoting their Aadhaar number and also use it wherever they are required to PAN."