PAN-Aadhaar Linkage: Why is linking Aadhaar and PAN essential? Know benefits and deadline

PAN- Aadhaar Linking Benefits: The government of India has set March 31, 2023 as the deadline for linking Aadhaar and PAN card. If you link Aadhaar and PAN before this date, you can take advantage of several benefits. However, if you fail to do so, your PAN card will be inactive and you will be deprived of many benefits.

Linking PAN with Aadhaar has many benefits, as both of them are important for KYC while opening a bank account and filing income tax returns. Here are some of the benefits:

• Linking Aadhaar and PAN gives the Income Tax Department an audit trail of all transactions, making Aadhaar card an important document for all transactions.

• ITR filing will not be allowed until your Aadhaar-PAN is linked.

• Once linked, ITR filing will be easier as the need for submission of receipt or e-signature will be done away with.

• The use of Aadhaar card has reduced the need for other documents to a great extent.

• Aadhaar card serves the purpose of identity proof and address proof.

• Transactions can be tracked after linking, which helps to prevent fraud and curb tax evasion.

At present, a fee of Rs 1000 needs to be paid for linking PAN card with Aadhaar card. It is essential to link the two cards before the deadline, as failure to do so can result in the deactivation of the PAN card and loss of benefits. Therefore, it is advisable to complete the linking process before the deadline to enjoy the benefits and avoid any inconvenience.

Read More: RBI shares future plan as daily UPI transactions cross 36 crore mark in India's Digital Payment landscape