The government asked all Indian citizens to link their PAN Cards with their Aadhaar Cards. Here’s why:
- Getting rid of Fake PAN Cards
This linking will help the government weed out fake PAN cards that individuals use in order to conceal their taxable income and pay less or no taxes at all.
- Identify tax evaders
Currently, a PAN card is essential for paying taxes. Since PAN is a necessary KYC requirement for bank accounts, linking the Aadhaar with PAN will automatically link an individual’s Aadhaar with his/her bank accounts. This will make it easier for the Income Tax Department to track everyone’s transactions, and the tax they should be paying.
- Curbing black money circulation
Financing illegal activities such as drug trafficking becomes easy with fake identities. Once a PAN card is linked to an Aadhaar card, it will eliminate the possibility of these activities.
- Easy for Taxpayers to file returns Currently, taxpayers need a PAN card to file income tax returns. The government has now made it mandatory to provide Aadhaar Card details too, while filing IT returns. Linking your PAN and Aadhaar will enable individuals to file their returns online, without any hassle. This also means that taxpayers will no longer have to send acknowledgements to the IT department.