New Delhi: The Aadhaar can now be used for cash transactions of more than Rs. 50,000 and all other purposes where traditionally income tax PAN number was a must, according to a top official.
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 said Saturday.
This comes after the 2019 Budget allowed interchangeability of PAN and Aadhaar for ease of compliance of taxpayers.
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 quote PAN.”
Of the over 41 crore PANs issued, 22 crore have been linked to Aadhaar
“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”.
In order to curb black money, quoting of PAN is mandatory for cash transactions, such as a hotel or foreign travel bills, exceeding Rs. 50,000. PAN is also mandatory on purchase of immovable property of over Rs. 10 lakh.