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.
Procedure for LinkingPAN Card and Aadhar 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 www.licit.ooo or download the app https://goo.gl/L8GeYk
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