Will Aadhaar interchangeability for ITR make PAN redundant?
- Apart from interchangeability with PAN, Aadhaar can also be quoted in other transactions that otherwise require quoting of PAN
- In a few years, Aadhaar may become the primary ID for individuals and, perhaps, PAN will become redundant for tax compliance
Finance minister Nirmala Sitharaman, in Budget 2019, proposed to allow interchangeability between Permanent Account Number (PAN) and Aadhaar, with effect from 1 September 2019. The interlinking of the two identity documents had been made mandatory in 2017. Although the Central Board of Direct Taxes (CBDT) has clarified that PAN is not obsolete, now that most functions that needed PAN can be carried out with Aadhaar instead, the relevance of the former is bound to decline. Nilanjana Chakraborty asks experts whether they think the quintessential PAN document is on its way out
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