"Why Aadhaar-card is important to link with pan-Card" ?

 

Linking Aadhaar with PAN (Permanent Account Number) is a regulatory requirement in India that holds several benefits and serves various purposes. The government has introduced this linkage to streamline and monitor financial transactions, curb tax evasion, and enhance the efficiency of various processes. Here's why linking Aadhaar with PAN is important:

1.Eliminating Duplicate PANs: Linking Aadhaar with PAN helps in identifying and eliminating cases of individuals holding multiple PAN cards. This reduces the chances of tax evasion and helps maintain accurate and unique taxpayer records.

2.Curbing Tax Evasion: By linking Aadhaar with PAN, the government can cross-verify the income and financial details declared by individuals during income tax filings. This cross-verification minimizes the chances of underreporting income and tax evasion.

3.Streamlining Income Tax Filing: The linkage simplifies the income tax filing process as certain personal details are already verified through Aadhaar. It reduces the need for repetitive documentation and speeds up the processing of tax returns.

4.Facilitating E-Verification: When filing income tax returns online, the linkage enables e-verification using Aadhaar-based One-Time Password (OTP). This eliminates the need for sending physical documents to the Income Tax Department for verification.

5.Targeted Subsidies and Benefits: Linking Aadhaar with PAN helps the government in better targeting subsidies and benefits to eligible individuals. This reduces leakage and ensures that benefits reach the intended beneficiaries.

6.Preventing Money Laundering: Linking Aadhaar with PAN assists in tracking financial transactions and identifying suspicious activities that might be related to money laundering or other illicit financial practices.

7.Promoting Digital Transactions: The linkage encourages digital transactions and e-governance by providing a secure and authenticated identity for various financial and official transactions.

8.Efficient Verification for Service Providers: Service providers such as banks, financial institutions, and telecom companies can use the linked Aadhaar and PAN details for seamless customer verification, complying with KYC norms.

9.Easier PAN Application: For individuals who do not have a PAN card, the Aadhaar linkage simplifies the process of applying for a new PAN card. It reduces the need for additional identity and address proofs.

10.Minimizing Errors: Linking Aadhaar with PAN reduces the chances of manual errors in data entry, as Aadhaar details are verified against the Aadhaar database.

It's important to note that the government has periodically extended the deadline for linking Aadhaar with PAN to ensure compliance and allow individuals sufficient time to complete the linkage. Non-compliance could lead to consequences such as invalidation of PAN or difficulties in filing income tax returns. However, as regulations and deadlines may change, it's advisable to refer to official government announcements for the most up-to-date information.

📃Documents Required:

1. {NSDL} Pancard

2. Voter ID Card. etc