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.