The Income tax department on Friday introduced the e-PAN facility for individuals seeking to file taxes for the first time. This service will be made available only for resident individual and does not include Hindu Undivided Family, trusts, firms and companies. The e-PAN will be issued instantly for a limited period of time on first come first serve basis to all individuals with valid Aadhar cards.
How the e-PAN is issued
- You have to submit details like DOB, gender, mobile number and address as available in Aadhaar. The details are confirmed, updated and e-PAN will be generated. These details need to be accurate as the e-KYC will be done using the Aadhar database.
- After the e-KYC process is completed successfully you will need to upload a scanned copy of their signature. After filling the application a 15 digit acknowledgment number is generated and sent to your registered mobile number or email mentioned in the application form.
- You will receive a fresh PAN number allotted on the basis of a one-time password (OTP) sent on the registered mobile number linked with your valid Aadhaar number.
- Once you receive the PAN through the electronic Aadhaar-based verification system in a few seconds. The PAN card will be later sent by post. This process can be carried by all applicants officially here.
Officials from the department revealed the new facility has been introduced with an intention to increase the number of people applying to obtain the Permanent Account Number (PAN) for their financial and tax matters.
It has become mandatory for every person having a PAN as on July 1, 2017, under Section 139AA(2) of Income Tax Act to inform tax officials of his/her Aadhaar number. The deadline for linking your PAN with Aadhar has been extended to March 31, 2019, by the Central Board of Direct Taxes (CBDT) which makes policies for the Income Tax Department. This is the fifth time the deadline has been extended.
Though the e-PAN seems to be an easier option of filing taxes you must be aware of the implications of seeking an e-PAN, as it may turn out to be a trojan horse through which the IT Department and the UIDAI can ensure seeding of Aadhaar with personal details.
Aadhaar is issued by the Unique Identification Authority of India (UIDAI) to an Indian resident. Whereas PAN is a 10-digit alphanumeric number allotted by the Income Tax Department to a person, firm or entity.