Starting October 1, significant changes will be implemented regarding the use of personal identification for certain financial and tax-related processes. Individuals will experience a shift in the requirements for Aadhaar Enrolment ID for PAN allotment or income tax return filings, streamlining the procedure for greater efficiency. These adjustments are part of ongoing efforts to simplify compliance and improve transparency in the system.
What is an Aadhaar Enrolment ID?
The Aadhaar Enrolment ID is a unique identifier assigned to individuals during Aadhaar registration. It serves as a temporary reference to track the status of an Aadhaar application until the official Aadhaar number is issued. The Enrolment ID comprises a 14-digit number and a 14-digit date stamp, which together help monitor the enrolment process.
Latest Update
The Centre’s decision to discontinue the option of using the Aadhaar enrollment ID in place of the Aadhaar number took effect on October 1. Starting this month, individuals will no longer be required to provide their Aadhaar enrollment ID when applying for a PAN or filing income tax returns.
Background
In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced the discontinuation of the option to quote the Aadhaar Enrolment ID instead of the Aadhaar number for taxation purposes.
Additionally, it was proposed that individuals who have been allotted PAN based on their Aadhaar Enrolment ID must provide their Aadhaar number to the Income Tax authorities by a notified date.
“The said provisions allowing the quoting of Aadhaar Enrolment ID in application form for allotment of PAN or in the return of income, was introduced in 2017. Since then, as per data available in public domain, coverage of Aadhaar number has been increasing, and has encompassed majority of the population in India. Hence, it is imperative to discontinue the option of quoting of the Enrolment ID of Aadhaar application form, as any allotment of PAN against the Enrolment ID may lead to duplication and misuse of PAN,” the Budget memorandum stated.
