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In recent years, the Government of India has implemented various initiatives to improve its governance systems and make them more efficient. One such initiative has been the linking of various identity documents to the Aadhaar card, a unique identification number issued to Indian citizens. The latest move in this direction is the government’s notification that mandates the linking of PAN (Permanent Account Number) to Aadhaar. In this article, we will delve deeper into this notification and its implications for Indian citizens.
What is PAN?
PAN or Permanent Account Number is a unique identification number assigned to taxpayers in India. It is a 10-digit alphanumeric number issued by the Income Tax Department and is used to track the financial transactions of individuals and businesses. PAN is mandatory for filing income tax returns and for various financial transactions such as opening a bank account, investing in mutual funds, buying or selling property, etc.
What is Aadhaar?
Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI) to Indian citizens. It contains demographic and biometric information of the individual and is used as a proof of identity and address for various services such as opening a bank account, getting a mobile connection, etc.
What is the notification about?
The latest notification issued by the government mandates the linking of PAN to Aadhaar. The notification, issued on 31st March 2021, states that every person who has been allotted a PAN as of 1st July 2021 and who is eligible to obtain an Aadhaar number, shall intimate his Aadhaar number to the Income Tax Department. Failure to do so may result in the PAN becoming inoperative.
What are the implications of the notification?
The linking of PAN to Aadhaar has several implications for Indian citizens. Firstly, it will help the government to track and prevent tax evasion as it will be easier to identify individuals who have multiple PANs or who under-report their income. Secondly, it will make it easier for individuals to file their income tax returns as they can do so using their Aadhaar number instead of PAN. Thirdly, it will help in reducing the paperwork and administrative burden on both taxpayers and the Income Tax Department.
How to link PAN to Aadhaar?
Linking PAN (Permanent Account Number) to Aadhaar in India is a simple process that can be completed online through the Income Tax Department’s website or the UIDAI (Unique Identification Authority of India) website. Here are the steps to link PAN to Aadhaar:
Step 1: Visit the Income Tax Department’s e-filing portal at https://www.incometaxindiaefiling.gov.in/home
Step 2: Click on the “Link Aadhaar” option under the “Quick Links” section on the left side of the page.
Step 3: Enter your PAN and Aadhaar number in the respective fields.
Step 4: Enter your name as per Aadhaar and the Captcha code.
Step 5: Click on the “Link Aadhaar” button.
Step 6: If the details entered by you match with the details in the Aadhaar database, the website will display a message saying that your Aadhaar has been successfully linked with your PAN.
Alternatively, you can also link PAN to Aadhaar through the UIDAI website by following these steps:
Step 1: Visit the UIDAI website at https://uidai.gov.in/
Step 2: Click on the “Aadhaar Services” tab and select “Aadhaar linking status” from the drop-down menu.
Step 3: Enter your PAN and Aadhaar number in the respective fields and click on the “Send OTP” button.
Step 4: Enter the OTP received on your registered mobile number and click on the “Submit” button.
Step 5: If the details entered by you match with the details in the Aadhaar database, the website will display a message saying that your Aadhaar has been successfully linked with your PAN.
It is important to note that the deadline to link PAN to Aadhaar is 31st March 2023.
What if you don’t have Aadhaar?
If you don’t have an Aadhaar number, you can apply for one through the UIDAI website or through an Aadhaar enrollment center. The process involves submitting your biometric and demographic information, and getting your photograph and fingerprints taken. Once the enrollment is complete, you will be issued an Aadhaar number.
What if there are errors in the Aadhaar or PAN details?
If there are any errors in the Aadhaar or PAN details, it is important to get them corrected before linking them. This can be done by visiting the nearest Aadhaar enrollment center or through the Income Tax Department’s website.
Conclusion
The linking of PAN to Aadhaar is a significant step towards making India’s governance systems more efficient and effective. It will help in reducing tax evasion, simplifying the income tax filing process, and reducing the administrative burden on taxpayers and the Income Tax Department. Therefore, it is crucial for all Indian citizens to link their PAN to Aadhaar before the deadline of 31st March 2023 to avoid any inconvenience.