Whay and How to Link PAN Card with Aadhaar Card
The Finance Bill is being amended with a new proposal that would make the Aadhaar card a greater necessity. This new change states that the Aadhaar card is needed in order to file an income tax return and to also apply for a Permanent Account Number or PAN card. This will go into effect on July 1.
The I-T Department has introduced a mobile app to help people with paying off their taxes and to check on their refunds. The use of an Aadhaar number could be used to help make it easier for taxes to be covered. This is especially to help with managing how returns are provided. PANs have also been considered by the I-T Department with the Aadhaar biometric being used to keep it working.
This is actually just one of the many changes to the Finance Bill. There are about 40 different changes being used in the bill as a means of making it easier for people to get the most out of their finances. However, the bill has not been without its controversy.
Important Aspects of the Process
A few additional points relating to the process of covering the costs associated with the Aadhaar setup and PAN card have to be reviewed:
- The e-KYC system that Aadhaar uses will help with issuing PAN cards. This is to help with verifying the identities of those aiming to get such cards for any intention. This is a proposal at the moment that is currently in its preliminary stage.
- One’s birth date or address may be linked to the Aadhaar number. This helps to confirm a person’s identity and makes it easier for points to be reviewed carefully and under control.
- Biometric identification will be a key part of the process. Like with many other Aadhaar-related setups, this works with a proper identification of a fingerprint listed on one’s Aadhaar account.
- An Aadhaar number must be properly used with a PAN card. Any PAN card that does not have such a number on it will be invalid and will not be accepted in any case.
Aadhaar Is Important
The Aadhaar number system is essential to all people around India. It helps people to get bank accounts opened, transfer financial data and even get SIM cards that can be used in their mobile devices. This is a popular system for identification that has 111 crore numbers out at this time. The Aadhaar Enabled Payment System only makes this all the more popular for use.
The PAN card system has been growing in size as well. In particular, 2.5 crore people from all over the country sign up to use the PAN card system every year. This number has been increasing over time as people are starting to learn more about the benefits of the system and how it may work for them. About 25 crore people in the country currently use the PAN card.
The system has been growing but there are still several crore people out around the country who are eligible for it who do not have numbers. Enrollment centers can still be found around the country. This is in the hopes of getting more people to sign up for the system and use it for their needs.
There were plenty of other amendments to the Finance Bill to go along with the Aadhaar and PAN requirements being added:
- The legal limit on how high a cash transaction can be has been reduced from Rs. 3 lakh to Rs. 2 lakh. This comes as a means of keeping black money from moving around the country while also supporting the ongoing digital economy.
- People cannot spend more than Rs. 20,000 in cash on the purchase of any property that cannot be moved. This is particularly used for real estate and land mass purchases among other stationary options.
- Any purchase of more than Rs. 1 lakh will require a PAN card. This is expected to work for cash-based transactions although it is uncertain if this is going to move along to other types of transactions.
These changes are all part of a money bill that does not have to be approved in a bicameral session. The Lok Sabha has approved of it as the BJP has a majority in that house. However, many competing political parties are unhappy about the changes for how they were added at the last minute. This includes possible impacts on how people may be represented as there is a potential for some people to be unable to get the general coverage managed.
Regardless of what happens with the Financial Act in the future, people around India are expected to get their Aadhaar numbers ready for their tax purposes. This will help with not only simplifying the process but also get more people to sign up for the Aadhaar system for a number of other needs.