Thursday, May 11, 2017

Linking Aadhar card with PAN card is mandatory!!!

As the government decided to go ahead with linking Aadhar cardwith a permanent account number (PAN) the public has been confused about lot of rumours surrounding. A biometric identification system is an essential feature of the current society, and the scheme of PAN had become conjecture as it could be falsified, while Aadhar is a secure and vigorous system by which the identity of an individual cannot be faked.

A unique 10 character code is assigned to all tax paying entities in India referred as PAN Card. A PAN card is issued by the Income Tax Department and the card links all transactions that attract tax under a single source, making it appropriate for the government to keep track of all transactions. A PAN card is obligatory for filing Income Tax returns in the country, and all individuals and entities that pay taxes, including foreigners are expected to have one. Apart from its primary use, a PAN card can be used as proof of identity and age.

The Aadhar card is a unique identification card. It is assigned to every Indian citizen and it furnished by the Unique IdentificationAuthority of India. It’s a 12 digit number that will be used as a proof of identity and proof of address. Aadhar is an enterprise by the government to have a single identification document for the whole citizen in the country. The card holds individual’s biometric and demographic information so it serves as a personal identification card.


To link the Pan Card with the Aadhar Card, the taxpayers have to first register on the Income tax e-Filing portal for linking the Aadhar card and PAN card. After registering, follow the below steps:-

  •  Using log-in ID, password and date of birth user can login to the E-Filing portal of the Income Tax Department.
  • After logging into the site a window will appear encouraging you to link your PAN card with Aadhar card.
  • Details such as name, gender and date of birth will already be disclosed as per the details submitted at the time of registration to the E-Filing portal.
  •  Verify the details mentioned with the Aadhar card.
  • After verifying details with other card you can enter the Aadhar number and click on the “link now” button
  • A pop up message will appear regarding your successful linking of PAN and Aadhar card.

Importance of Linking PAN Card with Aadhar Card:-

Aadhar card and PAN card are unique identification cards and both are required as proof of identity that are necessary for registration and verification purposes.
The government has advised all citizens to link their PAN cards with their other cards.

This is being done for the following purposes:-

Prevent Tax Evasion:-

The government can keep track of the taxable transactions of a particular individual whose address and identity will be proved by his Aadhar card by linking the Aadhar and PAN cards. This will efficiently mean that the whole taxable transaction or activity will be recorded by the government. As a result of this, the government has a complete record of all financial transactions forming tax evasion a thing of the past.

Multiple PAN Cards:-

Linking PAN and Aadhar card reduces applying for multiple PAN cards by an individual in an effort to defraud the government and avoid paying taxes. By this method one’s PAN card can be used for some type of financial transaction and pay taxes applicable for those. Another one used certain other accounts and transactions that the person wishes to conceal from the Income Taxdepartment, thereby avoiding paying tax on them.

The government will be able to link the identity of a person through his/her Aadhar card, by linking the PAN and Aadhar card and later have details of all financial transactions made through the linked PAN card. The government will be able to find if multiple PAN cards linked with a same name and can take corrective action.  

Ease in Filing of Income Tax Returns:-

Every person can file their E-Returns or their online Income Tax returns perfectly and quickly after linking PAN and Aadhar card. After linking the PAN and Aadhar, entities will no longer have to submit their Income Tax acknowledgement to the IT department, thus saving taxpayers a lot of trouble.

The government has made it obligatory to link the PAN to the Aadhar before 1st of July 2017. Linking of PAN to Aadhar is required for e-filing the Income Tax Return (ITR).

To get more clarifications on the matter or for any legal assistance, connect with the expert consultants of Licit. For online legal consultation from the best lawyer visit the biggest online legal solution or download the app

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