On May 27, 2020, the Union Finance Minister Nirmala Sitaraman launched instant Aadhaar based E-KYC.
- The facility will be available for PAN applicants that possess valid Aadhaar number.
- They should also have a mobile number registered with Aadhaar.
- The process of allotting PAN is paperless and is also free of cost.
- The instant Aadhaar based E-KYC was introduced by the Finance Minister in the Union Budget 2020-21.
- She announced that a system will be brought in that will instantly provide PAN without the requirement of filling up of application form.
- PAN is Permanent Account Number. It is a 10-digit alpha numeric number that is issued by Income Tax Department.
- It enables income tax department to link the transaction of the person with the department.
- The transactions include TDS, TCS, tax payments, income returns, correspondence, specified transactions, etc.
- It is now mandatory to provide PAN on return of income.
- Also, it was made mandatory to provide PAN for all challan payments since 2005.