New Delhi: In view of Union finance minister Nirmala Sitharaman announcing during the Budget that PAN and Aadhaar cards will be made interchangeable, be ready to shell out Rs 10,000 as fine if you enter wrong digits for high-value transactions.
The penal provision is expected to be applicable from September 1 after amendments are made in the relevant laws. The Budget proposed that Section 272B of the IT Act (which deals with penalties on failure of complying to rules of Section 139A) be amended.
During the Budget, Sitharaman had said that now Aadhaar cards could be used in place of PAN to file IT returns. Or, Aadhaar can be given in place of PAN wherever asked.
“The Income Tax department shall allot PAN to such person on the basis of Aadhaar after obtaining demographic data from the Unique Identification Authority of India (UIDAI). It is also proposed to provide that a person who has already linked his Aadhaar with his PAN may at his option use Aadhaar in place of PAN under the Act,” an annexure to the Budget speech read.
Banks and other institutions will make backend upgrades to allow acceptance of Aadhaar in all places where quoting PAN is now mandatory, Revenue Secretary Ajay Bhushan Pandey.
“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.
Asked if Aadhaar can be used for deposit or withdrawal of cash worth more than Rs. 50,000 from bank accounts in place of PAN, Mr Pandey said, “There also you can use Aadhaar”.