1. Compliance with the law

The government of India has made it mandatory to link your PAN card with Aadhaar card as per Section 139AA of the Income Tax Act, 1961.

2. Avoiding Penalties

If you don't link your PAN card with Aadhaar card, you may face a penalty of up to Rs. 1,000. Moreover, non-linking of PAN with Aadhaar may lead to the deactivation of your PAN card.

Top 10 reasons why you should link your PAN card with Aadhaar

3. Simplified Tax Filing

Linking your PAN card with Aadhaar card can simplify the tax filing process as it will enable pre-filling of personal details in the income tax return form.

4. Avoiding duplication

Linking your PAN card with Aadhaar card can help in avoiding duplication of PAN cards, which is a common issue that can arise due to individuals having multiple PAN cards.

5. Preventing tax evasion

Linking your PAN card with Aadhaar card can help in preventing tax evasion by ensuring that all taxpayers have a unique identification number.

6. Easy Verification

 

Linking your PAN card with Aadhaar card can make the verification process easy as the government can quickly verify the authenticity of the PAN card through the Aadhaar database.

7. Facilitate financial transactions

Linking your PAN card with Aadhaar card can make it easy to carry out financial transactions such as opening a bank account, making investments, and applying for loans.

8. Simplified KYC process

Linking your PAN card with Aadhaar card can simplify the Know Your Customer (KYC) process for financial institutions.

 

9. Access to government services

Linking your PAN card with Aadhaar card can make it easy to access government services such as subsidies and welfare schemes.

10. Helps in authenticating identity

Linking your PAN card with Aadhaar card can help in authenticating your identity and prevent identity theft.

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Published by

Rakesh Ishi
(Working at Private Company)
Category Income Tax   Report

1 Likes   0 Shares   6765 Views

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