Union Budget 2019: Union Finance Minister Nirmala Sitharaman in her Budget speech has announced that taxpayers can now file Income Tax returns using Aadhaar Card also. The FM has made PAN card (Permanent Account Number) and Aadhaar card interchangeable for filing tax returns.
"More than 120 crore Indians now have Aadhaar card, therefore for ease of taxpayers I propose to make PAN and Aadhar interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhaar number and use it wherever they require to use PAN."
Once this proposal will get green light in the Parliament, individuals will be able to use Aadhaar cards instead of PAN cards to conduct financial transactions, for instance, mutual fund investments, buying gold, and others.
FULL COVERAGE: Union Budget 2019
The move is aimed at improving tax compliance and ease the process of tax payment for tax payers.
At present, it is mandatory to quote PAN number for filing ITR without which the tax cannot be filed. And, this year in April, the government further amended the rule and made linkage of Aadhaar and PAN number mandatory for filing ITR returns.