The Central Board of Direct Taxes ( CBDT ) has notified Amendments in various Income Tax Forms which provide Aadhaar can be used instead of Permanent Account Number ( PAN ).
The CBDT made changes in forty-eight different places.
Section 139A of the Income Tax Act was amended by the Finance (No. 2) Act, 2019 to provide for interchangeability of PAN and Aadhaar number.
A person, not having PAN, may furnish his Aadhaar number in lieu of PAN, in all those transaction where furnishing of PAN is mandatory.
The Notification came into force from September 1st, 2019. The CBDT also clarified that, no person is being adversely affected by giving retrospective effect to these amendment rules.
According to Section 40 of the Finance Act, 2019, a person who ) has not been allotted a permanent account number but possesses the Aadhaar number, may furnish or intimate or quote his Aadhaar number in lieu of the permanent account number, and such person shall be allotted a permanent account number in such manner as may be prescribed.
The Section also said that, a person who has been allotted a permanent account number, and who has intimated his Aadhaar number in accordance with provisions of sub-section (2) of section 139AA, may furnish or intimate or quote his Aadhaar number in lieu of the permanent account number.
