New Delhi: Nirmala Sithraman presented her first maiden Budget 2019 in Parliament on July 5. She made a host of announcements regarding the filing of income tax return (ITR), interchangeability of PAN and Aadhaar, quoting of PAN or Aadhaar, consequences of not linking Aadhaar with PAN (permanent account number).
If you have not linked your Aadhaar with PAN yet, you might have to be prepared to face the consequences. Finance Minister Sitharaman in her Budget speech said, “Presently, the Act provides for making PAN invalid if it is not linked with Aadhaar within a notified date. In order to protect past transactions carried out through such PAN, it is proposed to provide that if a person fails to intimate the Aadhaar number, the PAN allotted to such person shall be made inoperative in the prescribed manner after the date notified for the said linking.”
Here are three key announcements made in Budget 2019-
1. In Budget 2019, it is proposed to make income tax return filing compulsory for individuals, who have deposited over Rs 1 crore in a current account in one year, or who have spent over Rs 2 lakh on foreign travel or more than Rs 1 lakh on electricity consumption in one year or who fulfils the prescribed conditions, in order to ensure that persons who enter into high-value transactions also furnish return of income. It is also proposed to provide that a person whose income becomes lower than the maximum amount not chargeable to tax due to a claim of rollover benefit of capital gains shall also be required to furnish the return.
2. Another proposal made is to provide interchangeability of PAN and Aadhaar in order to enable a person who doesn’t have PAN, but has Aadhaar to use Aadhaar in place of PAN under the Act. The I-T Department shall allot PAN to such person on the basis of Aadhaar after obtaining demographic data from the Unique Identification Authority of India (UIDAI). It is also proposed to provide that a person who has already linked his Aadhaar with his PAN may at his option use Aadhaar in place of PAN under the Act.
3. Apart from these, in an attempt to track high-value transactions, it is proposed to provide the mentioning and authentication of PAN or Aadhaar shall be made mandatory for certain prescribed transactions. Also, the person who is receiving relevant documents shall ensure correct mentioning and authentication of Aadhaar or PAN for the prescribed transactions. In order to ensure compliance of these provisions, it is also proposed to amend the relevant penalty provisions.