In a significant change, the Union
Government has proposed a new system to allot PAN online on the basis of
Aadhaar in Union Budget 2020.
A new system is proposed to launched to instantly allot Permanent Account
Number (PAN) online on the basis of Aadhaar without the need to fill up any
detailed application form. The measure is objected at easing the process of
allotment of PAN.
The move is however made in furtherance to the 2019 Budget
wherein PAN and Aadhaar were proposed to be made interchangeable. It was
proposed that the individuals without a PAN would be able to file their Income
Tax returns just by quoting their Aadhaar number and vice versa.
Now, the E-Commerce Operators (ECOs)
shall be required to discharge TDS at a rate of 5% in non-PAN/Aadhaar cases and
TDS at a rate of 1% with PAN/Aadhaar cases.