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Complete Steps on How to Link Aadhaar Card with PAN Card
The Government of India has launched an intense drive in recent months to encourage people to link their Aadhar cards to PAN cards online. If a PAN card is not linked to Aadhaar, an individual will be unable to invest in mutual funds, stocks, or open a bank account, among other things, because providing a PAN card is required in all of those cases. As investors and taxpayers, you must grasp one thing, which is very essential. To begin, how do you link your Aadhar card to your PAN card?
What is an Aadhaar Card?
The Aadhaar number is a 12-digit random number provided by the Authority to Indian residents who complete the Authority's verification process. Any resident of India, regardless of age or gender, may freely enrol in order to get an Aadhaar number. An individual who wants to enrol must supply basic demographic and biometric information throughout the free registration procedure.
What is a PAN Card?
PAN, which stands for Permanent Account Number, is a 10-digit alphanumeric code used for unique identification. To prevent tax avoidance, the income tax department is responsible for supplying this number to every potential taxpayer. This is made possible since PAN is an electronic system that monitors every taxpaying citizen's financial activities. Two people can not have the same number here. Every individual is assigned a unique identifying number via a laminated card known as the PAN card.
Suggested Read: Online PAN Card Application Process
Steps to Link Aadhaar Card to PAN Card
In order to link your Aadhaar Card to your PAN Card online, you need to follow the following steps:
Go to the Income Tax eFiling website link in order to link Aadhar to your PAN card.
Make sure you are registered. PAN is a unique identification number.
Sign in using your user ID, password, and date of birth.
When you link PAN to Aadhaar, a pop-up window will appear. If it's not already linked, click Link Aadhaar in the menu bar.
Your PAN card already contains your name, date of birth, gender, and similar information.
The screen shows the PAN data that matches the Aadhaar PAN data. If the document is inconsistent, you need to correct it, for instance, you can change the address in the PAN card as per the Aadhaar card to match the information.
If you entered the Aadhaar number correctly, you will need to click Link Now to link your account. You will see a message informing you that Aadhaar has been successfully linked to PAN.
Why is it Essential to Link Your Aadhaar Card to PAN Card?
PAN cards and Aadhaar cards are both unique identification cards that serve as proof of identity and are required for registration and verification. If you have lost your PAN card, you can apply for a duplicate pan card online. The government has advised all organizations to connect their PAN cards to their Aadhaar cards. This is done for the following reasons:
1. Multiple PAN Cards Spotting
By applying for multiple PAN cards, an entity can use one of the cards for a specific set of financial activities and pay the taxes associated with those activities, while the other PAN card can be used to conceal accounts or transactions from the income tax department, allowing the company to avoid paying taxes on them.
The government would be able to identify an entity's identification through his/her Aadhaar card and then have records of all financial transactions performed through the linked PAN card by linking the PAN and Aadhaar cards. If numerous PAN cards are registered under the same name, the government can detect them and take remedial action.
2. Prevents Tax Evasion
By linking the Aadhaar and PAN cards, the government will be able to track the taxable activities of a specific individual or company whose identity and address will be validated by the Aadhaar card. This practically means that the government will record every taxable transaction or activity. As a consequence, the government will already have a full record of all financial transactions that might draw tax for each firm, thereby eliminating tax evasion.
While there may be some teething issues, the Aadhar-PAN connection is a move in the right direction. Over time, both individual taxpayers and the government should profit significantly! Linking a PAN card to an Aadhaar card is straightforward, and the government has offered several means for doing so. The deadline for connecting your PAN to your Aadhaar card has been extended till March 31, 2023. If you are yet to apply for a PAN card, apply for it and get it seamlessly at your nearest Muthoot Finance branch.