Budget 2019: Now File ITR With Adhaar Details

If you have been restless for the past few months for not having Permanent Account Number (PAN) card, then there is a reason to rejoice for you, as from 2019-20 financial year onwards you can file your income tax return (ITR) using your Aadhaar card as well. Finance Minister Nirmala Sitharaman in her first budget speech disclosed, PAN-Aadhaar inter-changeability policy for the general public. 

This inter-changeability also means if you do not have Aadhaar card then you can use your PAN card for availing various services related to public offices. For example, if you want to avail benefits of Direct Benefit Transfer scheme, you can use your PAN card if you don’t have Aadhaar card. 

However, the government has not made it clear whether the two documents must be inter-linked before availing the benefits of this inter-changeability policy. It must be noted that the income tax department has already made linking of PAN with Aadhaar a compulsory exercise. In the past, the taxpayers were informed of this move through a notification issued by the Central Board of Direct Taxes. 

Sitharaman, while presenting the Budget 2019 said, “Those who do not have PAN can file ITR using their Aadhaar details.” At present, it is mandatory to quote PAN at the time of filing of ITR. This move has sent cheers among the taxpayers as well as financial planners as they believe the step will further ease the ITR filing process. 

However, there has been no change announced in this year’s Budget on the personal income tax front. At the post-budget briefing with the media, Sitharaman while answering a query as to why there was no change rolled out in the income tax slabs she said, “When was the change on income tax front announced last time? (It was) Four months ago.” 

In the interim Budget in February 2019, the then acting finance minister Piyush Goyal had announced a rebate of Rs 12,500, which gave relief to the taxpayers. But there was no change declared in tax slabs even at that time. Due to this rebate taxpayers who have an income of Rs 5 lakh per annum do not have pay any income tax. But it does not mean they will not be required to file ITR. 

At present, there are tax slabs of 0%, 5%, 20% and 30% for income of Rs 2.5 lakh, Rs 2.51 lakh to Rs 5 lakh, Rs 5.01 lakh to Rs 10 lakh and Rs 10 lakh and above respectively. Apart from that there is 10% surcharge for an income of Rs 50 lakh and up to Rs 1 crore. And if the income exceeds Rs 1 crore then the surcharge levied is at 15%. Besides, there is a 4% health and education cess on the income tax and relevant surcharge.