PAN and AADHAR are exchangeable for income tax purposes

Section 139A sets out the conditions in which an individual is required to get PAN. In current situation, PAN must be mentioned in all communications with the Income-tax Dept and in indicated financial transactions which surpass the threshold limit.

It has been seen by the Govt., that occasionally people going into high-esteem transactions, for example, purchase of foreign currency or enormous withdrawal from the banks, don’t have a PAN. In this manner, the mandatory conditions for getting PAN has been proposed to be relaxed as under:

  • An individual may outfit his Aadhaar number in lieu of PAN, and such individual will be designated a PAN in the recommended way;
  • Each individual who has been designated a PAN, and who has linked his Aadhaar number with PAN according to section 139AA, may furnish his Aadhaar number in lieu of a PAN for all the transactions where citing of PAN is required according to Income-tax Act.

Considerable changes have also been proposed in the penal arrangements of Section 272B in order to impose a penalty of Rs. 10,000 for each default in the following cases:

  • If person (i.e., banks, financial institution, and so on.) fails to get or validate the PAN or Aadhaar.
  • In case the assessee fails to quote or verify his PAN or Aadhaar in specific transactions.

Enquire at info@certicom.in or visit Certicom Consulting for more details.

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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

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