Benefits of linking PAN and Aadhaar: The Indian government has stipulated that the PAN card and Aadhaar must be linked by March 31, 2023. You can take advantage of a number of advantages if you link your PAN and Aadhaar before this date. However, failing to do so will render your PAN card inactive, denying you access to numerous benefits.
There are numerous advantages to linking PAN and Aadhaar because both are necessary for KYC when opening a bank account and filing income tax returns. The following are some advantages:
• The Income Tax Department receives an audit trail of all transactions when Aadhaar and PAN are linked, making the Aadhaar card an essential document for all transactions.
• You won’t be able to file an ITR until your Aadhaar and PAN are linked.
• The requirement to submit a receipt or an electronic signature will no longer be necessary for ITR filing once the two systems are linked.
• The use of the Aadhaar card has significantly reduced the need for additional documents.
• The Aadhaar card serves as proof of address and identity.
• After linking, transactions can be tracked, reducing tax evasion and fraud.
Linking a PAN card to an Aadhaar card currently requires paying a fee of Rs 1000. In order to avoid losing benefits and having the PAN card deactivated, it is critical that the two cards be linked before the deadline. As a result, it’s best to finish the linking process before the deadline to take advantage of the benefits and avoid any problems.