Identification proof is frequently required for registration and verification purposes. Aadhar card and PAN card both are unique identification cards which serve the same purpose.
The Indian government has taken the initiative to link people’s PAN cards with their Aadhar cards mainly for the following reasons:
It will become easier for the government to keep better scrutiny on the taxable transactions done by individuals and firms. Here, the PAN card details are matched with aadhar card details and each taxable transaction is recorded by the government.
Thus, with the financial transactions being recorded in detail, the government levy tax for accordingly, making tax evasion really hard.
Multiple PAN Cards
People can use fake PAN cards for the accounts or transactions they might wish to conceal from the Income Tax department, hence, avoid paying tax on them.
Now with the cards linked, such instances will be significantly reduced, which means fewer cases of tax evasion frauds. Also, it will take lesser time for the government to take corrective action in such fraud cases.
Ease in e Filing
After linking these two, taxpayers will no longer have to submit their Income Tax acknowledgement to the IT department. This will save lots of time for the taxpayers .
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