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Government to penalise people who misquote Aadhaar number: Report

If you provide the wrong number while quoting your Aadhaar number instead of the PAN to make high-value transactions, you will be liable to pay a penalty of ₹10,000, Hindustan Times reported on July 14. The penal provision is expected to go in effect from September 1, 2019, HT cited government officials, after existing laws are amended in line with the July 5 budget announcement that allowed interchangeability of PAN and Aadhaar, including in IT returns.

The official said that a similar penalty will also be imposed on the person who is supposed to authenticate the identification number. However, “before passing the penalty order, a person shall be heard,” the official reportedly said.

The tax department has also proposed to allot a fresh PAN to individuals who file tax returns with only the Aadhaar as a part of a new arrangement to link the two databases, Central Board of Direct Taxes (CBDT) chairman Pramod Mody reportedly said.

Union Budget 2019: Make Aadhaar and PAN interchangeable

Finance Minister Nirmala Sitharaman, in her maiden budget speech on July 5, proposed to make PAN card and Aadhaar interchangeable, including in IT returns, as long as a person’s Aadhaar and PAN have been linked under Section 139A. From September 1, 2019, if a person fails to intimate Aadhaar number under Section 139A, then it’s proposed that the PAN of the person “shall be made inoperative” “to protect the validity of transactions previously carried out through the PAN”.

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