The Income Tax Department will automatically issue Permanent Account Number (PAN) to taxpayers filing returns using Aadhaar number. This is part of a new system to connect both databases.

As per the 30 August notification of the Central Board of Direct Taxes (CBDT), if a person files a return using Aadhaar and does not have a PAN number, it will be presumed that he has applied for the issuance of PAN. After this, he will not need to file any other documents.

This rule became effective from September 1. The notification states that the tax department will collect other demographic information of the person from Aadhaar for allotment of PAN number.

CBDT is the apex policy-making body for the Income Tax Department. CBDT chairman PC Modi had told PTI-Bhasha in an interview in July that the department would allocate a new PAN number to the person who would use Aadhaar while filing the return. This is part of a new system of connecting the two databases.