The Budget that Finance Minister Nirmala Sitharaman presented on Tuesday has made a significant proposal that is going to impact a large number of people. She has said that the provision that allow providing Aadhaar Enrolment ID in place of Aadhaar number, Aadhaar in ITR, PAN application would be discontinued to prevent misuse of the PAN (Permanent Account Number).
Effective from October 1, 2024
The new rule will be enforced from October 1 this year.
“The existing provisions of section 139AA of the Act mandate, inter-alia, that every person who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number—
(i) in the application form for allotment of Permanent Account Number (PAN)
(ii) in the return of income.”
“Further, said section also provides that where the person does not possess the Aadhaar Number, the Enrolment ID of Aadhaar application form issued to him at the time of enrolment shall be quoted in the application for permanent account number or in the return of income furnished by him.”
Reasons for change
The Budget has also clarified why the section is being removed.
“The said provisions allowing the quoting of Aadhaar Enrolment ID in application form for allotment of PAN or in the return of income, was introduced in 2017. Since then, as per data available in public domain, coverage of Aadhaar number has been increasing, and has encompassed majority of the population in India. Hence, it is imperative to discontinue the option of quoting of the Enrolment ID of Aadhaar application form, as any allotment of PAN against the Enrolment ID may lead to duplication and misuse of PAN,” the Budget memorandum read.
The new rule
None can submit Aadhaar enrolment ID in the application form for allotment of Permanent Account Number (PAN) from October 1, 2024.
It has been also said that everyone who got the PAN on the basis of Aadhaar Enrolment ID must intimate his Aadhaar number on or before a notified date.
Retrieve EID from UIDAI website
The Aadhaar Enrollment ID is a 28-digit unique identification number that is attached to each Aadhaar applicant. The Aadhaar is a 12-digit individual identification number which serves as proof of identity for residents of India.
The EID can be retrieved from the UIDAI website under ‘My Aadhaar’. One can select Retrieve Lost or Forgotten EID/UID and proceed.
The Budget memorandum contains this proposal to prevent misuse of PAN. It will kick in from October 1 this year. Aadhaar enrollment ID won’t be accepted in lieu of Aadhaar in ITR, PAN application. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
