PAN-Aadhaar Link: Govt extends last date for linking to June 30; know PAN Card laws in India
In India, every citizen is required to possess a PAN (Permanent Account Number) card and an Aadhaar card. While PAN card is primarily used for tax-related purposes, Aadhaar is a unique identification number that is issued to all Indian residents. In recent years, the government has made it mandatory for individuals to link their PAN and Aadhaar cards. In this article, we will discuss the laws governing the linking of PAN and Aadhaar cards in India.
The Linking of PAN and Aadhaar Cards
In 2017, the government made it mandatory for individuals to link their PAN and Aadhaar cards. The deadline for linking was initially set for August 31, 2017, but it was later extended to March 31, 2022. The government has also provided an online platform for individuals to link their cards.
#VerifyAadhaarwithQRCode— Aadhaar (@UIDAI) March 29, 2023
On scanning the QR code, photograph and the demographic details of presented Aadhaar are displayed for easy verification.
Aadhaar can easily be verified by scanning the QR Code, using the mAadhaar App or Aadhaar QR Scanner.@GoI_MeitY @PIB_India pic.twitter.com/QCiWPnE0yw
Why is Linking of PAN and Aadhaar Cards Important?
Linking PAN and Aadhaar cards is important for several reasons. One of the primary reasons is to prevent tax evasion. When individuals link their PAN and Aadhaar cards, the government can verify the identity of the individual and track their financial transactions. This can help the government to prevent tax evasion and bring more people under the tax net.
Additionally, linking PAN and Aadhaar cards can also help individuals to simplify their tax-related processes. For instance, individuals can use their Aadhaar card to file their income tax returns (ITRs) online. This can help to reduce the amount of paperwork and make the process more efficient.
PAN Card Laws in India
The PAN card is a ten-digit alphanumeric code that is issued by the Income Tax Department of India. The card is used primarily for tax-related purposes such as filing income tax returns, opening bank accounts, and investing in securities. The PAN card is also used as a proof of identity and address in several other instances.
Every Indian citizen is required to have a PAN card if their income exceeds the taxable limit. The current taxable limit is Rs. 2.5 lakhs per annum. Individuals who do not have a PAN card can apply for one by submitting an application to the Income Tax Department. Anybody can submit the application either in person or online.
Any person can also apply for a PAN card through authorized agents such as UTI Infrastructure Technology and Services Limited (UTIITSL) or National Securities Depository Limited (NSDL). The application process usually takes 15-20 days, and the PAN card is sent to the applicant’s address.
Penalties for Not Having a PAN Card
Individuals who do not have a PAN card or who fail to quote their PAN number when required may face penalties. As per the Income Tax Act, individuals who do not have a PAN card or who fail to quote their PAN number may be subject to a penalty of up to Rs. 10,000.
Additionally, individuals who provide false information or who conceal their income may also face penalties that can range from 100% to 300% of the tax amount due.
In conclusion, linking PAN and Aadhaar cards is mandatory for individuals in India. The government has extended the deadline for linking to March 31, 2022. Linking PAN and Aadhaar cards is important for preventing tax evasion and simplifying tax-related processes. The PAN card is also mandatory for individuals whose income exceeds the taxable limit. Failure to possess a PAN card or quoting the PAN number when required may result in penalties.