Finance Minister Nirmala Sitharaman Saturday rolled out a new process of instant PAN card allotment to people without much hassle.

Presenting her second budget under Modi 2.0FM Sitharaman said that PAN can now be allotted instantly based on Aadhaar.

Presenting Union Budget 2020, Finance Minister Nirmala Sitharaman said that Aadhaar-based verification of taxpayers is also being introduced. For ease and convenience of taxpayers, she said a system will be launched soon, for instant online allotment of PAN-based on Aadhaar, without the need for filing an application form.

“To further ease the process of allotment of PAN, soon we will launch a system under which PAN shall be instantly allotted online based on Aadhaar without any requirement for filling up of detailed application form,” Sitharaman said.

Since last year, PAN and Aadhaar cards have been made interchangeable for income tax purposes. It is also mandatory for you to link your PAN with Aadhaar card within March 31, 2020.

The income tax department issues PAN card through two agencies — NSDL and UTI-ITSL and PAN card can now be

You are required to have a PAN for various purposes like filing ITR, opening a bank account, conducting financial transactions and so on.

The finance minister added that the announcement is aimed at further easing the process of PAN allotment by doing away with the need to fill up any detailed application form.

The Budget 2020 also allowed e-commerce operators to deduct TDS (tax deducted at source) on all payments participants at 1% rate with PAN/Aadhaar and 5% rate in non-PAN/Aadhaar cases.

Does This New System Make Sense?

This new system of generating a new PAN Card using Aadhaar card makes perfect sense since now it’s compulsory to interlink them.

March 31, 2020, is the deadline, and in case any PAN Card is not linked with Aadhaar, then it will become non-operational.

Hence, by announcing a new, easy way to generate PAN via Aadhaar, Govt. is making sure that every Aadhar cardholder gets a new PAN Card, and they are also interlinked by default.