PAN-Aadhaar link made mandatory by the government: all you need to know about this
The news of the government implementing the finance act 2017 is making waves. As per reports, the Indian government has implemented this act whereby all the citizens have to link their Aadhaar number with Permanent Account Number (PAN) before the deadline i.e. July 1, 2017. If any citizen fails to do so, then his PAN card would become invalid after the deadline. This means that your PAN would be ceased and it won’t serve as an identity proof, abstaining you from making transactions that cannot be made bereft PAN. Furthermore, the government has also mandated the bank accounts to be linked with PAN before June 30, 2017. Lets us have an insight into the whole matter:
What is the significance of Aadhaar number and PAN?
Aadhaar is a 12 digit code or number that is issued by Unique Identification Authority of India (UIDAI). It establishes an identity on the basis of biometrics and demographics and serves as an identity as well as an address proof. The purpose of aadhar is to provide a universal identity that would negate the need to produce different documents while availing certain services. Aadhar is useful for:
- Online ITR
- Digital locker
- Digital life certificate
PAN is a 10 digit alphanumeric number that is issued by Income Tax Department. It can be used for tracking one’s financial transaction and exorbitant spending. PAN is also essential while making hefty transactions and opting for financial services such as a loan. PAN is mandatory for:
- Purchase or selling of immovable property above 10 lakhs
- Mobile wallet transactions exceeding Rs 50,000
- Opening a bank account except Jandhan account
- Cash deposit above Rs 50,000 in a single day in bank account
- Investments, bill payments above Rs 50,000
- Opening a Demat account
- Buying or selling motor vehicles
Why government implemented this finance act?
The government executed this plan to keep a check on the financial transactions and watch out tax evaders as only one per cent of the population are taxpayers.
- More than 24.32 crore of PAN card have been registered in the country
- Around 113 crore Aadhaar card have been issued
2.87 crore individuals filed income tax returns in 2012-2013 out of which, 1.62 crore people did not pay tax.
How to link your PAN card with Aadhaar number?
- Register yourself on e-filling portal of Income Tax Department i.e. incometaxindiafilling.gov.in, create an id for logging in
- Enter your login id and fill the field of password and date of birth
- Go to your profile setting and look for the option of linking Aadhar card. A pop-up may appear as soon as you log in, promptingto link your PAN with Aadhaar
- Check your details, there shouldn’t be any mismatch in name, date of birth and gender
- If everything is correct, enter your aadhar number and click on ‘link now’ button
The government has mandated to link the Aadhar with PAN and bank account with PAN. However, supreme court is hearing petition against linking of aadhar and PAN and the decision is awaited.