link PAN Card with Aadhaar Card- A PAN (Permanent Account Number) card is a unique 10 character code that is assigned to all tax paying entities in India. Income Tax Department issues the PAN card; the card links all transactions that attract tax under a single source, making it convenient for the government to keep track of these. A PAN card is necessary for all individuals and entities that pay tax, including foreigners, are expected to have one for filing Income Tax returns in the country.
Besides its primary use, a PAN card is also used as proof of uniqueness and age for everything from booking tickets for a movie, investing in the stock market to applying for a passport. The Aadhaar card is a unique identification card that is allotted to the very Indian citizen. Issued by the Unique Identification Authority of India, the card is a 12 digit number that serves as proof of identity as well as proof of address. The government has taken steps to have a single identification document for every citizen in the country; the card is a personal identification card that contains the individual’s biometric information. These days, a number of government services and schemes require an Aadhaar number for registration and verification purposes, thereby making it an important document. Both PAN card, as well as the Aadhaar card, is unique identification cards that serve as proof of identity that is necessary for registration and verification purposes. The government has urged all individuals to link their PAN cards with their Aadhaar cards. This is being done for the following purposes:
Prevent Tax Evasion:
By linking the Aadhaar and PAN cards, the government would keep records on the taxable transactions of a particular individual or entity, whose identity and address will be verified by his Aadhaar card. This will effectively mean that every taxable transaction or activity will be recorded by the government. The government would have a detailed record of all the financial transactions that would attract tax for each individual.
Multiple PAN Cards:
The reason behind for linking PAN with Aadhaar is to reduce the occurrence of individuals or entities applying for multiple PAN cards in an effort to defraud the government and avoid paying taxes.
Applying for more than one PAN card, an individual can use one of the cards for a certain set of financial transactions. Meanwhile, the other PAN card can be used for accounts or transactions that the individuals request to conceal from the Income Tax department, thereby avoiding paying tax on them.
Linking the PAN and Aadhaar card, the government will be able to link the identity of an individual through his/her Aadhaar card, and subsequently, have details of all financial transactions made through the linked PAN card. If there are multiple PAN cards registered with the same name, the government will be able to identify the same and take corrective action.
How to link PAN card with Aadhaar card:
Individual who have linked their PAN and Aadhaar cards would be authorized to file their e-Returns or their online Income Tax returns seamlessly and quickly. Linking the two, entities will no longer have to submit their Income Tax acknowledgment to the IT department, thus saving taxpayers a lot of trouble.
Below are steps to link PAN Card with Aadhaar Card:
- First Register yourself at the e-Filing website of the Income Tax Department.
- If individuals are already registered, log in the site using your ID, password, and captcha code.
- After login, a window will pop-up proposing to link your PAN with UID.
- Your registered details will appear automatically.
- Verify the entered details and match them with details mentioned in Aadhar card.
- If the provided details are tallying, just type in your Aadhar card number and click on the “link now” button.
- After few seconds, a message will appear on the screen informing you of successful linking of your PAN and UID.
- If the details which are provided by you are not tallying as in your Aadhar card, submit a valid proof and get the details corrected.
As per online procedure, you can link your Aadhar card to your PAN card without submitting any documents. Just need to ensure that your details including spellings in your registered details at e-filing site should match with that of Aadhar card. From 1st April Aadhaar cards will also be mandatory for opening an Employee Provident Fund (EPF) account. In February the government made the Aadhaar mandatory for people who have ration cards in order to receive further subsidies from the Public Distribution System (PDS) under the National Food Security Act. 108 crore peoples have Aadhaar cards in the country and 25 crore individuals have PAN card holders. The government has pushed for the use of Aadhaar card over the years maintaining that people have made duplicates of the PAN card which were being used to file for returns.