By linking the PAN and Aadhaar card, the government will be able to link the identity of an entity through his/her Aadhaar card, and subsequently have details of all financial transactions made through the linked PAN card. benefits of Aadhaar-PAN linking you must be aware of By linking the PAN and Aadhaar card, the government will be able to link the identity of an entity through his/her Aadhaar card, and subsequently have details of all financial transactions made through the linked PAN card.
What is the meaning of Adhar card?
Aadhaar is a 12-digit unique identification number issued by the Indian government to every individual resident of India. The Unique Identification Authority of India (UDAI), which functions under the Planning Commission of India, is responsible for managing Aadhaar numbers and Aadhaar identification cards
What is PAN card?
PAN or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof. … The PAN number remains unaffected by change of address throughout India.
Who needs a PAN card?
Obtaining a PAN card or Permanent Account Number is mandatory for every tax payer or the person who needs to file an income tax return on behalf of self or others. Basically, any individual/non individual (including the foreign citizens/entities) earning taxable income in India must have a PAN card.
what are the benefits of linking aadhaar card to pan card?
The Aadhaar-PAN linkage will be a very important step in formalising the economy and reducing cash transactions. As the parallel economy gets squeezed, India’s tax collections and credit rating should both improve. Hence this is a very important step towards achieving higher economic growth and giving stability to our country
Apart from taxation purposes, is now required for doing so many things, like opening a bank account, at the time of sale or purchase of any immovable property valued at Rs 5 lakh or more or sale or purchase of a motor vehicle, and many other financial transactions.Linking of the Aadhaar number with the PAN card is part of the government drive against black money. It is also part of the Digital india initiative in which all government records are to be digitalised.
- Having a link with Aadhaar will enable the Income Tax Department to a establish an efficient and meticulous surveillance system of detecting tax evasion. This is because Aadhaar number can enable easy access to the IT returns filed sequentially as well as other details for an individual.
- Linking your Aadhaar number with the PAN card will help avoid cancellation of your PAN card.
- This linkage will also ease filing of income tax returns as assesses need not show the receipt of the return to the IT authorities.
- Removes the chances of the same individual having more than one PAN card. “This was a major source of tax evasion and multiple cards were proving to be a major hurdle in improving tax compliance.
- Aadhaar-PAN linking will help one having a summarized detail of one’s taxes attached to one’s unique identification number for future reference.