Income Tax Department to automatically generate PAN Card from 1 sept.

The Income Tax Department will automatically issue Permanent Account Numbers, or PAN, to taxpayers who use their Aadhaar numbers for filing tax returns. This is part of a new arrangement to link the two databases. This is part of a new arrangement to link the two databases. The new rules are effective from September 1.

The Central Board of Direct Taxes in a notification issued on August 30 said a person with an Aadhar number but not a PAN card “shall be deemed” to have applied for allotment of PAN and they will not be required to apply or submit any documents. It said the news rules were effective from September 1. The Central Board of Direct Taxes frames policy for the tax department.

PAN is a 10-digit number allotted by the tax department to a person, firm or entity.

The notification by the direct taxes board said the income tax department would “obtain demographic information of an individual from the Unique Identification Authority of India for allotment of Permanent Account Number, a ten-digit alphanumeric identifier issued by it”.

It added that tax department would be “responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing or intimation or quoting or authentication of Aadhaar number or obtaining of demographic information of an individual from the UIDAI, for allotment of permanent account number and issue thereof”.

On July 5, Finance Minister Nirmala Sitharaman had said during Budget presentation that people could quote Aadhaar numbers instead of PAN while filing tax returns. Sitharaman had said it would allow those who do not have a PAN card to give their Aadhaar number whenever needed.