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PAN-Aadhaar interchangeability: 6 instances where you can use Aadhaar number instead of PAN

Do keep in mind that it is advisable to link your PAN with Aadhaar number before quoting it in lieu of PAN. This is because there still is no clarity whether second PAN will be allotted to you if your Aadhaar is not linked to PAN.

, ET Online|
Dec 07, 2019, 10.53 AM IST
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The Permanent Account Number (PAN) and Aadhaar can now be used interchangeably. In this regard, the Central Board of Direct Taxes (CBDT), via a notification dated November 6, amended more than 100 forms where now an individual can quote either his Aadhaar number in lieu of PAN.

Here is a look at six instances where you can quote Aadhaar number instead of PAN. However, do keep in mind that it is advisable to link your PAN with Aadhaar number before quoting it in lieu of PAN. This is because there still is no clarity whether second PAN will be allotted to you if your Aadhaar is not linked to PAN. Click here to read the story.

Can I open a bank account using my Aadhaar number instead of PAN?
Chartered Account Naveen Wadhwa, DGM, Taxmann.com says, "The recent amendment in Rule 114B of the income tax laws allow an individual to use his/her Aadhaar number to open a bank account instead of PAN. However, know-your-customer (KYC) forms have not been amended by the government. Therefore, while opening a new bank account, as part of the KYC process, an individual will have to submit their PAN."

I have to give my landlord's PAN to my employer to claim the HRA exemption. Can I give Aadhaar number instead of PAN to my employer?
Wadhwa says, "The recently amended income tax law allows an individual to quote his/her Aadhaar number in lieu of PAN where quoting of PAN is mandatory. The recent changes allow an individual to give his/her landlord's Aadhaar number to the employer to claim house rent allowance (HRA) exemption, provided the landlord has either linked his Aadhaar with PAN or he has not obtained the PAN yet."

I have to submit Form 15G/ 15H to the bank to avoid higher TDS on the interest earned from a fixed deposit. Can I give my Aadhaar number instead of PAN to the bank?
Abhishek Soni, CEO and founder, Tax2win.in, an ITR filing website, says, "Notification dated November 6, 2019 has amended Form15G (Individuals)/Form 15H (senior citizens) which allows quoting of either Aadhaar number or PAN to avoid higher TDS in Form 15G/Form 15G. Therefore, to avoid higher TDS deduction from this financial year, individuals and senior citizens can give Aadhaar number instead of PAN to their bank. However, do keep in mind that the Form 16A given to you by your bank will reflect your Aadhaar number instead of your PAN."

I have to submit an investment declaration along with proof of actual investments to my employer to avoid higher TDS. Can I give my Aadhaar number instead of PAN to the employer in the investment declaration form?
Soni says, "Yes, you can give your Aadhaar number instead of PAN to your employer to avoid higher tax deduction. You will be required to mention your Aadhaar number in the investment declaration form 12BB while submitting actual investment proofs. Remember, when your employer issues you Form-16, then in such a case your Aadhaar number will be reflected in place of PAN."

I am paying monthly rent exceeding Rs 50,000. I need to deduct TDS for the payments to my landlord. Can I use my landlord's Aadhaar number to deposit TDS with the government?
Soni says, "Yes, you can use your Aadhaar number to deposit the TDS to the government. You will be required to mention your landlord's Aadhaar number. The TDS will be deducted at the rate of 5 per cent. To deposit TDS, you will be required to mention Aadhaar number of your landlord in form 26QC. Here again, the TDS certificate, i.e., Form 16C will reflect the Aadhaar number of your landlord. Further, to deposit TDS you also have the option to quote your Aadhaar number instead of your PAN in form 26QC."

I have bought a property during the financial year 2019-20 for Rs 60 lakh. While making a payment, I am supposed to deduct TDS at the rate of one per cent. Can I use Aadhaar number instead of PAN of the seller to quote in the TDS return Form 26QB?
Wadhwa says, "As per income tax laws, it is mandatory for the buyer of the property to deduct TDS before making payment to the seller if the value of the property exceeds Rs 50 lakh. The tax has to be deducted at the rate of one per cent. The CBDT has amended the Form 26QB (used by individuals to file TDS return) where it has allowed the individual (both seller and buyer) to quote either Aadhaar number or PAN. Remember, Form 16B TDS certificate to be furnished to the seller by the buyer will reflect either PAN or Aadhaar as quoted in the TDS return statement, i.e., Form 26QB."

I have recently joined a new job. I am supposed to give details of my income from my previous employer to the current one. Can I give this information using my Aadhaar number?
Soni says, "While joining a new job in the middle of the year, an individual is required to furnish income details of the previous employer to the current employer using Form 12B. The declaration helps the new employer to ascertain the correct amount of TDS to be deducted from future payments, if any. An individual submitting such information to the new employer using Form 12B can quote his/her Aadhaar number in lieu of PAN."

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