From cash transactions to property buying, you can use these two documents in place of PAN

From cash transactions to property buying, you can use these two documents in place of PAN

New Delhi: Permanent Account Number (PAN) is a 10 digit alphanumeric unique ID allotted by the Income Tax Department for assessing the taxpayers. From opening a bank account, filing tax, booking tickets, to many other financial transactions, PAN card is one of the most important documents.

Finance Minister Nirmala Sitharaman proposed various changes related to PAN card, Aadhaar, cash transaction and more during her Budget speech. The government proposed that PAN and Aadhaar card can be used interchangeably to file an income tax returns (ITR).

Under Section 139A of the Income Tax Act, 1961, PAN card is mandatory for some categories of individuals such as those with taxable income and for carrying out high-value financial transactions.

In case you do not have PAN, given below documents can be used-

The Aadhaar card can be used wherever PAN is required. The interchangeability of Aadhaar and PAN came into force from this September. One can quote Aadhaar number in place of PAN wherever it is required as per the income tax-related rules. According to a notification issued by Central Board of Direct Taxes (CBDT) on August 30, “Any person… who has furnished or intimated or quoted his Aadhaar number in lieu of the permanent account number in accordance with sub-section (5E) of section 139A, shall be deemed to have applied for allotment of permanent account number and he shall not be required to apply or submit any documents under this rule”.

Aadhaar can be quoted for cash transactions of more than Rs 50,000 and all other purposes where traditionally for income tax PAN number was a must. Revenue Secretary Ajay Bhushan Pandey said that the banks and other institutions will make upgrade the backend to allow acceptance of Aadhaar in all places where quoting PAN is now mandatory.

Aadhaar can be used for depositing or withdrawing of cash worth more than Rs 50,000 from bank accounts in place of PAN as both are interchangeable now. However, quoting PAN is mandatory for cash transactions, such as a hotel or foreign travel bills etc., worth over Rs 50,000. It is also mandatory on purchase of immovable property worth more than Rs 10 lakh.

Another document that can be used in place PAN is Form 60. This form is a signed declaration stating that you do not have PAN and your income is below taxable limits. This form can be filled by only those who do not have PAN. In case you do not have PAN card, can use Form 60, supported with relevant address and identity proof in order to carry out financial transactions.

 

Source:-timesnownews

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