The importance of the Aadhaar and PAN card cannot be ignored in the present economic scenario. The recent hustle around linking PAN card with Aadhaar card after the Supreme Court’s ruling has only emphasised on its importance. Aadhaar card link to mobile number has also picked up momentum in the past few months for facilitating Aadhaar verification.
The apex court, quoting section 139AA introduced in Budget 2017, has ruled that it is mandatory to provide Aadhaar number when applying for a PAN card. For those who have already been allotted a PAN need to link it with their Aadhaar number mandatorily.
Also, PAN number is necessary in most places where financial transactions take place, like opening a bank account, receiving a salary, availing loans, etc. Therefore, this card carries all the essential information related to a person’s financial transactions.
Continue reading to know the reasons that make it essential to go for PAN Card link Aadhaar card. Before that, take a look at what these two cards are.
What is an Aadhaar card?
Aadhaar card is a photo id card that comes with a 12-digit Aadhaar number. It also carries necessary biometric and other personal credentials of the person it is issued to. The UIDAI (Unique Identity Authority of India) operating under the Government of India issues the same to every Indian citizen.
What is a PAN card?
A Permanent Account Number or PAN is an alphanumeric number of 10 digits issued by the Income Tax Department, Government of India. It carries all information related to an individual’s tax details. The government makes it mandatory for all taxpayers to have a PAN card.
Reasons that make it essential to have a PAN card linked with Aadhaar card:
As mandated by the apex court’s ruling, you must link your PAN card with the Aadhaar card, or you would not be allowed to file your Income Tax returns. Also, not following the instruction can lead to cancellation of your PAN card.
Not to mention, availing advances like personal loans also necessitate you to furnish your PAN card. In the absence of this card, you may not be able to avail such credits. Other reasons that make it necessary to link Aadhaar with PAN card are as follows.
1. Reduction in tax evasion
As per the existing rules, it is mandatory to have a PAN card for paying taxes. Since every person needs to furnish both PAN card and Aadhaar card as KYC documents, linking Aadhaar card with the Pan card can help track every transaction of an individual, and the tax he/she must pay. It thus helps in reducing tax evasion.
2. Easy filing of Income Tax returns
With this linking, taxpayers can file their returns online without any hassles. It also eliminates the need to send an acknowledgement for tax paid to the IT department. Filing of the returns can be verified through the mobile number linked to a taxpayer’s Aadhaar card.
So, make sure you know how to link mobile number with Aadhaar if you haven’t linked it yet, and go forward with the process so that tax payment is simplified.
3. Curbing the circulation of black money
As linking of PAN card with Aadhaar card is made mandate, chances of carrying out any transaction with a fake PAN is minimised. Also, it helps to reduce illegal transactions like drug trafficking, which are usually done through counterfeit IDs.
4. Facilitating quick processing of a loan
Both PAN card and Aadhaar card are necessary documents that find a mention in most financial institutions’ eligibility and document list for availing credits. So, if the two are linked, verification of one leads to verification of the other. It gives you immediate access to finance in the form of personal loans, and you can enjoy attractive offers on these loans.
All these reasons and benefits necessitate the linking of PAN card with Aadhaar card. If you haven’t linked them yet, do so at the earliest as the last date for linking has been extended to 30th September, 2019.