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The government has urged all individuals who possess an Aadhaar card, to link their PAN card with their Aadhaar card.
This is being done for the following purposes:-
Prevent Tax Evasion:
By linking the Aadhaar and PAN cards, the government will be able to keep tabs on the taxable transactions of a particular individual or entity, whose identity and address will be verified by his/her Aadhaar card. This will effectively mean that every taxable transaction or activity will be recorded by the government. Thus preventing Tax evasion.
Multiple PAN Cards:
Currently, all taxpayers need to have a PAN number to file income tax return. However, others, such as students outside the tax bracket, also use the PAN card as a proof of identity.
The government says many of these PAN cards are fraudulently obtained, a practice that can be checked by a unique identification number.
Ease in Filing of Income Tax Returns:
Those who have linked their PAN and Aadhaar cards will be able to file their e-Returns, or their online Income Tax returns very easily. By linking the two, you will no longer have to submit your Income Tax acknowledgement to the IT department, thus saving a lot of inconvenience.
What is the procedure for Linking PAN Card and Aadhaar Card online?
Step 1:
Open the Income Tax e-filing portal
Register on it using your PAN as your user id.
Log on the page using your User ID, Password and Date of Birth.
Under ‘Profile Settings’ on the menu bar, click on ‘Link Aadhaar’.
Step 2:
Add the required details like name, DOB and gender as per PAN details. Following which you enter your 12 digit Aadhaar card number, verify captcha and Click on ‘Link Aadhaar’.
Step 3:
Finally, a popup message will display that your Aadhaar card has been successfully linked to your PAN card.