As per the Indian Government’s recent decision, all PAN cards that are not linked to Aadhar card will become invalid after 31st December, 2017.
Presently, the PAN card is required by taxpayers to file their income tax returns. Also, many citizens, such as students, use the PAN card as a document for identity proof. However, the Government has found there are many fraudulent and fake PAN cards. This error and the fraudulent use of multiple PAN cards under a single person’s name will be rectified by linking it to the Aadhar card, which has a unique 12 digit biometric identification number.
At present, approximately 98% of the population has their Aadhar card or has applied for it. Thus, the time frame till the end of the year for people to apply and get their card is adequate. The aim of introducing the Aadhar card and its unique identification number was to plug leaks in the distribution of the Government’s benefits as well as entitlements. With that objective in mind, the Government has linked many of its projects, schemes and subsidies with the Aadhar card. For instance, the Government’s midday meal scheme is linked to Aadhar card. Recently, the Government has also made submission of Aadhar card details mandatory for applying for a PAN card or for filing of income tax returns.
PAN cards are currently mandatory for travel or hotel bills made via cash transactions which exceed Rs 50,000 and also for purchasing jewellery worth more than Rs 2 lakhs irrespective of it being a cash or card transaction. Even, large cash deposits in banks can be made only by submitting PAN card number and details. However, the problem that has come to the Government’s notice is that there are many duplicate and fraudulent PAN cards that fraudsters are using. For instance, multiple fake PAN card numbers of the same individual are being used to file multiple tax returns.
The proposed introduction of unique and biometric Aadhar card for this purpose, such as tax returns filing and other official submissions, will eliminate duplicate PAN cards and fraudulent acts. In fact, Arun Jaitley, the finance minister, indicated at making the Aadhar card compulsory for all issues related to income tax.
By making Aadhar card mandatory, there will be a transparency in the income tax filing system, since Aadhar is a foolproof document of identification, thereby helping eliminate duplicates, and even helping trace those who launder money or evade tax.
The next agenda of the government is to decide a suitable time period within which citizens carry out the linking of their PAN card with Aadhar card, most likely being end of the year.
I hope you found this guide useful if you did please do share it with your friend’s & family. Please also leave your comments and feedback below. Your feedback and comment will help us bring you the best quality and relevant information on Aadhar Card India.