Good news for the general public! Aadhaar card can now be used for cash transactions of more than Rs 50,000 and all other purposes where traditionally income tax PAN card number was a must.
Banks and other financial institutions will update their back-end process to ensure that Aadhaar card is accepted for such transactions. Finance Minister Nirmala Sitharaman announced that the government would allow interchangeability of PAN card and Aadhaar card for ease of compliance of taxpayers. With Aadhaar the advantage would be he now does not have to generate PAN.
As per the current rules, it is mandatory to quote PAN card for cash transactions, such as hotel or foreign travel bills, exceeding Rs 50,000. PAN card is also mandatory on purchase of immovable property of over Rs 10 lakh.
Of the over 41 crore PANs issued, 22 crore have been linked to Aadhaar card. Section 139 AA (2) of the Income Tax Act says that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar card, must intimate his Aadhaar card number to the tax authorities. After the Supreme Court upheld Section 139AA of the I-T Act, the government in March extended the deadline for linking PAN with biometric ID Aadhaar by six months till September 30.