The Indian government has made it mandatory for every Indian citizen to link theri PAN (Permanent Account Number) with their Aadhaar. The deadline for this linking was extended several times, but now it has been made mandatory to PAN-Aadhaar Linking before the end of the current financial year i.e 31st March 2023. This step has been taken under the income Tax Act on India and has been made compulsory for all Indian taxpayers.
Understanding PAN and Aadhaar
PAN is 10 Digit alphanumeric number issued by the Income tax Department of India to track an individual’s financial transactions. It is unique identification number that is used for filing income tax returns, paying taxes and conducting financial transactions. Aadhaar, on the other hand, is a 12-digit unique identification number that is issued by the unique identification authority of India (UIDAI). Its is a bio-metric based identification system that is used to established the identity of an individual.
Why PAN-Aadhaar Linking is Mandatory
The government has made it Mandatory to link PAN with Aadhaar to eliminate fake or duplicate PAN Cards and to reduce the incidence of tax evasion. The linking will also help in tracking financial transactions more accurately, as it will help in establishing the identity of the taxpayer. Additionally, it will also help in identifying and cracking down on tax evaders who use multiple PAN Cards to avoid paying taxes.
Benefits of PAN-Aadhaar Linking
Linking PAN With Aadhaar will also help in availing various government schemes and subsidies. It will help ensuring that the benefits reach the intended beneficiaries and reduce the incidence of fraud and corruption.
How to link PAN With Aadhaar
The process of linking PAN with Aadhaar is a simple and straightforward process. It can be done online by visiting the Income Tax Department’s e-filing website https://www.incometax.gov.in or Click the Button given below
Simple Enter Your PAN And Aadhaar No. Pay the Fees of Rs 1,000/-. Select the Challan after Successful payment, enter the name as Written Aadhaar Card and click on the ‘Link Aadhaar’ Button, if the details match Pan will be linked to Aadhaar.
Individual can also link their PAN with Aadhaar through SMS as well. They need to send an SMS in the format UIDPAN<12-Digit Aadhaar No><10-Digit PAN number> to either 567678 or 56161 from their registered mobile number. if the details match, the PAN will be linked to the Aadhar Card.
Concerns about privacy and security
Nonetheless, Some concerns have been raised by individuals about the privacy and security of their personal information, especially with regards to Aadhaar. To address these concerns, The government has implemented various measures to safeguard the data of citizens. the Aadhaar Act, 2016 has Put in place strict provisions for protecting the privacy and security of Aadhaar Cardholders. Additionally, The Government has also launched various initiatives such as the Aadhaar authentication history and Virtual ID to further protect the data of citizens.
Conclusion: Importance of linking PAN With Aadhaar Before March 31 Deadline
Linking PAN with Aadhaar is crucial step towards improving the efficiency and transparency of the Indian taxation system. It will help in eliminating fake or duplicate PAN cards, reduce tax evasion, and ensure that benefits of government has reach the intended beneficiaries. While concerns about privacy and security have been raised, the government has put in place various measures to safeguard the data of citizens, Therefore, it is important for all Indian tax payers to link their PAN with Aadhaar before the end of the current financial year to avoid any penalties or legal consequences.
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