New Delhi, Sep 4 (KNN) Income Tax Department will automatically issue PAN to a taxpayer using Aadhaar number for filing returns as part of a new arrangement to link the two databases, according to Central Board of Direct Taxes (CBDT) notification.

The notification said the tax department will ‘obtain demographic information of an individual from the Unique Identification Authority of India (UIDAI)’ for allotment of Permanent Account Number (PAN), a ten-digit alphanumeric identifier issued by it.’

A person who furnishes Aadhaar, as they do not have PAN, "shall be deemed" to have applied for allotment of PAN and they will not be required to apply or submit any more documents, said CBDT.

The rule has come into effect from September 1, it added.