Finance Minister launched instant Aadhaar based E-KYC

On May 27, 2020, the Union Finance Minister Nirmala Sitaraman launched instant Aadhaar based E-KYC.

Highlights

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.

Union Budget

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.

About PAN

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.

Month: Current Affairs - May, 2020