Union Budget 2019 brought a lot of changes for Aadhaar card and PAN card holders. Finance Minister Nirmala Sitharaman proposed several changes regarding Aadhaar card, PAN card, cash withdrawal, cash deposits, ITR filing and more.
The government focused on curbing black money and boosting digital/cashless transactions in the country.
The government focused on curbing black money and boosting digital/cashless transactions in the country.
Take a look at new Aadhaar, PAN rules
1. Use of Aadhaar for transactions above Rs 50,000: Finance Secretary Ajay Bhushan Pandey announced after the Budget that for cash transactions over Rs 50,000, people can use their Aadhaar instead of PAN. Pandey said the Aadhaar number can be mentioned for cash transactions of more than Rs 50,000 or other purposes, where the use of PAN number is inevitable. He further informed that that banks and other institutions will upgrade their system to accept Aadhaar at all the places where it is mandatory to mention the PAN.
Once this proposal is approved in Parliament, individuals will be able to use Aadhaar cards instead of PAN cards to conduct financial transactions like mutual fund investments, buying gold, etc.
2. Cash deposit and withdrawal: Soon, Aadhaar can be used for deposit or withdrawal of cash worth more than Rs 50,000 from bank accounts in place of PAN as both are interchangeable now.
3. Aadhaar-PAN link: Now, the tax authorities will themselves allocate a new PAN to people who file their I-T returns using their Aadhaar card, said Central Board of Direct Taxes (CBDT) Chairman Pramod Chandra Mody on Sunday. The interchangeability of the two databases is an "additional facility" which will assure their linkage, he added.
4. Aadhaar for ITR filing: In her Budget speech, FM Sitharaman proposed to allow the use of Aadhaar for filing income tax returns instead of PAN. At present, to get a new PAN card, people would need to use their Aadhaar, while now they can use their Aadhaar without worrying about the PAN identity.
5. No PAN termination if not linked with Aadhaar: Pandey also informed that PAN will not be terminated in case it is not linked to Aadhaar since people will have an option of using either PAN or Aadhaar.
It is worth mentioning that in order to curb black money, quoting PAN is mandatory for cash transactions, such as hotel or foreign travel bills etc. worth over Rs 50,000. PAN is also mandatory on purchase of immovable property worth more than Rs 10 lakh.
