A recent move by Indian government asks masses to link their PAN card with Aadhar card. A big reason behind it is the digitisation drive the government is on. However, that is just one way to look at it. Another way to look at it is with the perspective of note ban that happened months ago. While that move aimed squarely at eliminating black money, it was just one move. The real problem runs deeper than just a hit on black money stashes (in cash) that many keep. Now that you are aware of the perspective, these reasons to link PAN card with Aadhar card are something you should consider.
Reasons to link PAN card with Aadhar card
Reason 1: Ease of filing returns
When your PAN card and Aadhar card are linked, the tax filing process will become easier. How? Right now, you have to file IT return and show the acknowledgement slip to the IT department. By linking your PAN card with Aadhar card, you can eliminate this final step. Depending on your mileage on this issue, you may be affected or not by this. However, every step reduced is time and effort saved is how you should look at it.
Reason 2: Prevent tax evasion
Before government asked people to link their PAN cards with Aadhar cards, a number of folks had more than one PAN card in their name. Not only is it an administrative hassle to keep a track of multiple PAN cards, tracking transactions related to these extra cards is a bigger hassle. Hence, one of the biggest reasons to link PAN card with Aadhar card is to ensure there is less hassle for government in tracking transactions related to a PAN card. Reduced hassles for government will result in faster response times from government to you.
Reason 3: Cut down on multiple PAN cards
Continuing on the same thread on which we ended the last reason is this. Every individual should have one PAN card only. This makes it easy for government to track your transactions and verify your tax returns. However, when you have multiple PAN cards, tax evasion is just one trouble. Identifying tax evaders is the real goal. So, if you have one PAN card linked to one Aadhar card, it helps in better identification of tax evaders. So, at least you can be struck off from the list of potential tax evaders. That means you may be troubled less by the government than before.
These reasons to link PAN card with Aadhar card are quite important. By ensuring action on above-mentioned areas, government can cut down on cash that is in circulation. If the currency in circulation comes down, India as an economy will become stronger. How? Since there is less cash to circulate in the market, the government will have to dispose its liquid assets (such as gold) less to keep the economy healthy. In such a scenario, the cost of various items you can buy will come down too, curbing inflation.
Understand it this way – suppose you give Rs 100 to ten individuals. In usual case, you will give each individual Rs 10. However, if one of them vanishes with your money, you will be forced to ask the remaining nine folks to cover for the loss of the tenth. So, the rest nine will have to add in a little over a rupee per head to cover for that loss. Black money does this to a nation’s economy. So, don’t wait anymore and link your PAN card with Aadhar card right now.