Linking PAN with Aadhaar is important for a number of reasons, including:
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To reduce tax evasion
PAN-Aadhaar linkage helps the government to track individuals' financial activities more effectively, reducing the chances of tax evasion. This is because Aadhaar is a unique identification number that is linked to an individual's biometrics, such as fingerprints and iris scans. This makes it very difficult for people to use fake or multiple PAN cards to evade taxes.
To promote transparency and fairness in the tax system
PAN-Aadhaar linkage ensures that everyone contributes their rightful share to the development of the nation. This is because it makes it more difficult for people to hide their income and assets from the government.
To eliminate duplicate PAN cards
PAN-Aadhaar linkage helps to eliminate duplicate PAN cards that may have been issued to the same individual. This is because Aadhaar is a unique identification number that can be linked to only one PAN card.
To reduce identity fraud
PAN-Aadhaar linkage helps to reduce identity fraud by making it more difficult for people to use fake or stolen PAN cards. This is because Aadhaar is a biometric identification system that can verify an individual's identity.
To simplify financial transactions
PAN-Aadhaar linkage makes it simple for you to access financial services and participate in various economic activities. This is because many financial institutions and government agencies now require PAN-Aadhaar linkage for opening bank accounts, applying for loans, and availing of various government subsidies and benefits.
In addition to the above benefits, PAN-Aadhaar linkage is also mandatory for a number of government services, such as filing income tax returns, availing of GST benefits, and applying for passports.
Overall, PAN-Aadhaar linkage is an important step towards creating a more transparent, efficient, and equitable financial system in India.
Additional benefits of PAN-Aadhaar linkage
Reduced paperwork and hassle
PAN-Aadhaar linkage eliminates the need to submit separate PAN and Aadhaar documents for various financial and government transactions. This saves a lot of time and effort.
Increased security
PAN-Aadhaar linkage makes it more difficult for unauthorized individuals to access an individual's financial and personal information. This is because banks and other financial institutions can now verify an individual's identity using Aadhaar authentication.
Improved financial inclusion
PAN-Aadhaar linkage has made it easier for people from low-income and marginalized groups to access financial services. This is because many banks and financial institutions now offer Aadhaar-based savings accounts and other financial products, which do not require a PAN card.
