It may be recalled that in the Union Budget, 2020, Finance Minister Smt. Sitharaman had announced to launch instant PAN facility shortly. In para 129 of the Budget Speech, the Finance Minister had stated, “In the last Budget, I had introduced the interchangeability of PAN and Aadhaar for which necessary rules were already notified.
In order to further ease the process of allotment of PAN, soon we will launch a system under which PAN shall be instantly allotted online on the basis of Aadhaar without any requirement for filling up of detailed application form.”
The facility of instant PAN through Aadhaar based e-KYC has been launched formally today, however, its ‘Beta version’ on a trial basis was started on 12th Feb 2020 on the e-filing website of Income Tax Department. Since then onwards, 6,77,680 instant PANs have been allotted with a turnaround time of about 10 minutes, till 25th May 2020.
It may also be noted that as on 25.05.2020, a total of 50.52 crore PANs have been allotted to the taxpayers, out of which, around 49.39 crores is allotted to the individuals and more than 32.17crore are seeded with Aadhaar so far.
The process of applying for instant PAN is very simple. The instant PAN applicant is required to access the e-filing website of the Income Tax Department to provide her/his valid Aadhaar number and then submit the OTP received on her/his Aadhaar registered mobile number.
On successful completion of this process, a 15-digit acknowledgement number is generated. If required, the applicant can check the status of the request anytime by providing her/his valid Aadhaar number and on the successful allotment, can download the e-PAN. The e-PAN is also sent to the applicant on her/his email id if it is registered with Aadhaar.
The launch of the Instant PAN facility is yet another step by the Income Tax Department towards Digital India, thereby creating further ease of compliance to the taxpayers.