Aadhaar Card Now an Alternative to PAN Card for Filing Income Tax Returns

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Finance Minister Nirmala Sitharaman made PAN card and Aadhaar card interchangeable for filing your income tax returns.

Do not have PAN Card and want to file income tax returns? You can file the returns by quoting Aadhaar number. The compulsory requirement of PAN card has been abolished to file income tax return. One can file the same via Aadhaar card as well.

Nirmala Sitharaman said in her Budget speech, "More than 120 crore Indians now have Aadhaar card, therefore for ease of tax-payers, I propose to make PAN card and Aadhaar card interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhaar number. They would be able to use that wherever one is required to use PAN.”

Income Tax Returns


The Finance Minister said that once the proposal is received by the Parliament, green people will be able to use the Aadhaar card instead of the PAN card. Aadhaar card will now be used for financial transactions, procurement, and purchase. The work of PAN card will now be done through your Aadhar Card.

In simple words, a taxpayer who does not have PAN card can now file Income Tax returns. This move is aimed at improving tax compliance and easing the process of tax payment.

Aadhaar card has an edge over PAN card as it is a biometric ID. It is difficult for unscrupulous people to fraudulently obtain it or quote a fake number. If the taxpayer has already linked his Aadhaar card with PAN card, he/she has the choice to use Aadhaar instead of PAN under the Income Tax Act.

The finance ministry has also taken another step to track high-value transactions. It is mandatory to provide either PAN or Aadhaar for certain prescribed transactions. Once this proposal gets green light in Parliament, individuals will be able to use Aadhar card to conduct financial transactions, mutual fund investments, buying gold and others.

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