The government of India has made the linking of PAN card with Aadhaar number mandatory starting 1st July. The step is taken in order to identify and stop individuals from evading taxes using multiple PAN cards. The announcement took place after an amendment made in the income tax rules, which also states that the individuals will have to mention their aadhaar number at the time of application for the PAN card.
In a statement, Revenue Department stated that the individuals who hold a PAN card as on July 01 2017, will have to update his aadhaar number with Principal Director General of Income-tax (Systems). The rule also includes quoting aadhaar number while applying for a new PAN card. Currently, 25 crore people in India have a PAN number, whereas, Aadhaar card has been issued to 111 crore people.
The issue of quoting aadhaar number while applying for a PAN card or while filing income tax returns has been in news for quite some time now. Last month, Supreme Court had issued a notification putting a partial stay on the decision of income tax department, however, the new rule clearly states that people giving excuses of privacy will no longer enjoy the privilege. Central board of direct taxes has again and again notified of making the step mandatory for obtaining PAN number or for filing the ITR.
PAN Number and Aadhaar are two separate identities issued by separate departments of the government. While Aadhaar is a 12 digit unique numeric code issued by UIDAI, PAN is a 10 digit alphanumeric combination, issued by income tax department.