Budget 2019: ITR Filing Made Easier; PAN, Aadhaar Interchangeable

Aadhaar and PAN can now be used interchangeably for filing tax returns.

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In a bid to further widen the direct tax net, the government in the Union Budget 2019 announced multiple measures to make Income Tax Returns (ITR) filing easier.

Interchangeability of PAN and Aadhaar

Finance Minister Nirmala Sitharaman proposed that Aadhaar and PAN be used interchangeably for filing tax returns.

Speaking on the subject, she announced that those who do not possess a PAN number can simply quote the 12-digit Aadhaar number instead.

“I propose to make PAN and Aadhaar interchangeable and allow those who do not have PAN to file Income Tax returns by simply quoting their Aadhaar number and also use it wherever they are required to quote PAN.”

Nirmala Sitharaman, Finance Minister

Pre-Filled Income Tax Returns

The finance minister also announced that forms for filing ITRs will undergo a revamp and will now be pre-filled.

The information will be collected from various sources such as mutual fund houses, registrars and banks and will be available for download from the income tax e-filing website.

This basically means taxpayers will get pre-filled details of their tax details when they download the pre-filled form from the income tax website.

“This will not only significantly reduce the time taken to file a tax return, but will also ensure accuracy of reporting of income and taxes.” 

Nirmala Sitharaman, Finance Minister

Faceless e-Assessment of ITRs

In yet another initiative, faceless income tax assessment in electronic mode involving no human interface will be launched this year in a phased manner.

The finance minister said that the move is aimed at reducing taxpayer harassment.

“To start with, such e-assessments shall be carried out in cases requiring verification of certain specified transactions or discrepancies.” 

Nirmala Sitharaman, Finance Minister