Modi government is consistently introducing amendments in tax laws for the convenience of Indian civilians. It is in news currently that the Income Tax Department will automatically generate Permanent Account Number (PAN) for taxpayers who file their returns using their Aadhaar Number. The rule is a servant to two masters. The provision also caters to the department as in the process all the Income Tax Returns will get linked with the PAN database which will be a rigid data for their tax-related analytics.

As per the contents directly from the desks of CBDT, if any person files an Income Tax Return using his Aadhaar Card, he is deemed to have applied for PAN. He does not have to apply for PAN separately after ITR.

The rule is on its way to ruling from 1 September 2019 through the amendments included in Budget 2019. Taxpayers are benefitted not once but twice as firstly the Income Tax can now be filed using Aadhaar Card and secondly, he will get the PAN (which is a legal identity) automatically generated while filing ITR via Adhaar Card.

Notifications from Central Board of Direct Taxes said that the tax department will extract all the relevant information from the filer’s Aadhaar for PAN allotment. CBDT acts like the governor of the Income Tax Department, this is the sole policy-making body for the tax department.

In July, CBDT chairman PC Modi made it public in an interview with the Press Trust of India that the department is going to allow a new PAN number to the taxpayer who would use Aadhaar for filing Income Tax Return. The process will help to bridge the two databases for a much rigid database.