PAN and Aadhaar cards are now interchangeable, said Finance Minister Nirmala Sitharaman on Friday.
"More than 120 crore Indians now have Aadhaar card, therefore for ease of taxpayers I propose to make PAN card and Aadhaar card interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhaar number and use it wherever they require to use PAN," she said in the Lok Sabha.
The Union Minister also said that faceless and anonymous assessment system for income tax will be rolled out in phases this year.
While PAN is used to ensure that every citizen pays their taxes, an Aadhaar Card is a unique identification (UID) number issued by the government.
On Thursday, the Lok Sabha passed by voice vote the Aadhaar and Other Laws (Amendment) Bill, 2019.
The Bill seeks to amend Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act 2016 and to further amend the Indian Telegraph Act 1885 and the Prevention of Money Laundering Act 2002.