What is the main purpose of Aadhaar Card in India?
The Aadhaar card is basically known as a unique identification card which is assigned to every citizen of India. The Aadhaar card is issued by the Unique Identification Authority of India (UIDAI).This card contains a twelve digits number which serves as proof of address as well as proof of identity. You need to remember that an Aadhaar card is not a proof of your citizenship.
The Aadhaar card is basically a part of the plan, which is implemented by the Indian government for each and every citizen of India. The Aadhaar card is an identity card issued by the Indian Government to a person and contains the demographic and biometric information of that person. Various schemes and wide variety of government services needs the Aadhaar number for verification and registration purposes. Therefore, having an Aadhaar card is very important and mandatory for you.
What is the main purpose of PAN Card in India?
A Permanent Account Number (PAN) card is a distinct ten-character code which is assigned to all the entities who pays income tax in India. This card is issued to an Indian citizen and is issued by the Income Tax Department. This card linked all the transactions which are taxable under a single source and makes it very easy for the government to keep a record of it.
The PAN card is mandatory to file Income tax returns in India. All the entities and persons who are paying taxes including foreign citizens are required to have the PAN card. The PAN card is also used as age and ID proof for applying a passport, investing your money in the stock market and for purchasing tickets for a movie.
How to Link Aadhaar with Pan Card Online through e-Filing Website?
How to Link Aadhaar with PAN by Sending a SMS?
The Income Tax Department announced that taxpayers can link Aadhaar card with PAN card by using a simple SMS based procedure.
For this you need to send an SMS to 56161 or 567678 in the format given below.
For example, UIDPAN 527734046767 AJWPG3217A
Correction Facility for Linking your PAN with Aadhar Card
In case there are errors, you can get it corrected by following these steps:
Importance of Linking PAN Card with Aadhar Card
You need to remember that both the Aadhaar card and the PAN card are unique identification cards which also works as identity proof and they are therefore essential for the purpose of verification and registration. The Indian government has asked all the entities to link their Aadhaar cards with their PAN cards for a variety of reasons.
To Stop Tax Evasion - By linking PAN and Aadhaar cards, the Indian government will able to keep track of the taxable transactions done by an entity or particular individual, whose address and identity will be confirmed by his Aadhaar card. This means that the government will record each taxable activity or transaction.
The outcome of this is that the government will have a complete record of the entire financial transactions which would attract tax liability for every entity, and makes it very difficult for them to evade the tax.
Various PAN Cards: Another cause to link Aadhaar with PAN is to decrease the occurrence of entities or the individuals, who applied for many PAN cards in an attempt to cheat the government to avoid tax payment.
By applying for multiple PAN cards, an individual or entity can use one of those cards for a specific type of financial transactions and pay taxes which are only applicable to them. Also, the other PAN card can be deployed for transactions or accounts that the entity wishes to hide from the Income Tax department, thereby skipping paying tax on them.
By linking the Aadhaar and PAN card, the government will be capable of linking the identity of an entity via her/his Aadhaar card, and subsequently get information of entire financial transactions perform edvia the PAN card linked. If there are many PAN cards registered under a similar name, the government will be able to detect the same and take the necessary action.
Convenience in Filing Income Tax Returns: Entities who already linked their Aadhaar and PAN cards will be capable of filing their online income tax returns quickly and efficiently. By linking the Aadhaar and PAN card, the entities will not require to submit the income tax acknowledgement to the concerned department.
Any Questions? Request a callback from our Tax Experts.