Tax

Everything you need to know about Aadhaar for ITR Filing

After crackdown on black money with demonetisation, government is now concentrating on discouraging accumulation of black money. Amongst the steps taken towards ensuring this, reducing the cash transaction amount to Rs. 2 lakh and making Aadhaar card mandatory for filing ITR are big ones. Not only this, from now on Aadhaar card shall be a necessary document to apply for PAN card. These moves shall make Aadhaar card the single most important document.

Why the Aadhaar card?

Now many people keep questioning the need for Aadhaar card considering that tax payers at least possess a PAN card. But the reality is that Aadhaar card is an identity document like none other. It is the only document that saves biometrics of the holder. Of course even for passport one needs to produce fingerprints but Aadhaar goes a step further and records retinal scans. Also one person can own multiple PAN numbers which provides avenue for tax evasion and concealment of income. Now with a link to common Aadhaar number, such malicious possibilities will be choked.

Aadhaar was optional for filing ITR but from July this year, it is mandatory to obtain aadhaar card and linking it to your PAN card in the Income Tax department’s portal. Other than the ITR, aadhaar card is also linked to numerous subsidies. The best example of this is cooking gas subsidy that users get directly from government. So from an optional identity document, Aadhaar card has slowly and steadily assumed a powerful role of being a mandatory instrument.

Advantages of Linking Aadhaar card

Linking Aadhaar card to PAN Card for filing ITR has various advantages for the government. It can act as the best deterrent from committing financial frauds including filing false returns or declaring wrong income. As the unique Aadhaar number is required to be mentioned while undertaking number of procedures, the transactions can be easily tracked down to individuals concerned. It will also become possible to extract genuine data and establish financial credibility by just the mention of Aadhaar number.

Disadvantages of Linking Aadhaar card

Every word said and done, Aadhaar card is an additional card every Indian now needs to carry. The government should have done away with PAN card when it introduced Aadhar card but unfortunately by that time PAN card had already entrenched the system deeply. Many applicants also have privacy issues around Aadhaar card, after all it records and stores the biometric information of the applicant. An appeal to revoke the rule mandating Aadhaar card has been made in front of the Supreme Court already.

How to Link Aadhaar card with PAN Card

Make sure that date of birth and gender on both the cards- Aadhaar as well as PAN are same. Here is the step by step guide which shows how a tax payer can link the Aadhaar card with Pan Card:

  • Step 1: Visit www.incometaxindiaefiling.gov.in and click on “link Aadhaar card” option on the menu on the left side.
  • Step 2: In the resultant screen that pops up, enter your PAN number, Aadhaar number, name as per Aadhaar and enter the Captcha provided. Then click on the green box at the bottom which says “link Aaadhaar”.
  • Step 3: In case of minor mismatch of details between the cards then Aadhaar OTP shall be required. Same shall be sent on the phone. In case of any major mismatch like different names, date of birth etc, the applicant shall need to correct the information wherever it is wrong whether Aadhaar or PAN.

In case of applicants who have a login id to www.incometaxindiaefiling.gov.in , it is advisable to login and then carry out this process. If you are not registered then create a login which hardly takes anytime. You have to provide your PAN no., date of birth etc for your profile. Then go to “Link Aadhaar” under “profile settings in the main menu and follow the steps already given above.

Don’t have Aadhaar card, learn how we can help

Do not sweat it, if you do not have Aadhaar card. Visit us on Letzbank and allow us to help you. We have collaborated with Clear Tax, the most reliable tax filing platform in India. Just click on Clear Tax and then “apply for Aadhaar card”. They also have a guide that explains how to mention aadhaar enrolment number in your Income Tax return. That is not all, you can proceed to file your Income Tax return through Clear Tax. The platform is super simple to use and understand. The navigation is convenient and there are experts available to help you with your doubts. You can even hire a Chartered Accountant right on the portal if you have the need of specialised services.

If you have not linked your Aadhaar card to PAN till now, do it as early as possible. Even those who are not required to file returns, it is advisable to link both the document as you never know when some more mandates are introduced making it necessary for you to link them.