Check Out the Difference Between Aadhaar and PAN Card

As part of the Finance Act, 2017, the Government of India has made it mandatory for individuals to link their PAN and Aadhaar card with effect from July 1, 2017. This decision of Aadhaar-PAN linking aims to ease the income tax filing process. However, many citizens continue to be unaware of the mandate. In this article, we will talk about the difference between Aadhaar and PAN cards.

The Permanent Account Number, or PAN, is a 10-digit alphanumeric number issued to all the persons who are liable to pay taxes in the country. The identification number is unique for each taxpayer in India. These digits play a vital role in facilitating different kinds of transactions that are made each day. Simply put, the PAN acts as a primary key for storing information on the financial holdings of a single entity.

The Aadhaar is a unique 12-digit ID system issued to Indian residents. To generate the Aadhaar, the officials collect the personal data of each individual and store the same in the database maintained by the Unique Identification Authority of India (UIDAI).

Considering that both documents are extremely important, the Government of India has made it mandatory for citizens to link their PAN with Aadhaar card. Let’s understand the difference between Aadhaar and PAN cards.

Issued by the Income Tax Department of India, the PAN card is issued to track and identify high-value transactions and detect financial fraud. The acts performed by the department are carefully monitored by the Central Board for Direct Taxes or CBDT. Through the PAN, the authorities want to ensure that every citizen of the country duly pays his/her share of taxes.

 

The Aadhaar card, on the other hand, is issued through the central government’s Unique Identification Authority of India (UIDAI) that gives each individual a unique identification number known as Aadhaar number. It collects biometric data, iris scans, and photographs of individuals and maintains it in the Aadhaar database. Organisations such as banking and financial institutions in India use the Aadhaar database to verify an individual’s identity before processing any loans or credit.

 

The PAN and Aadhaar card can both be used as a supporting document to validate one’s identity. This has also led to many people thinking that having one document is enough. However, the documents serve an important purpose beyond being mere identification cards. The listed table will help you understand this better.

To conclude, PAN and Aadhaar card are two valuable documents that hold equal importance and all individuals must possess them. The government encourages individuals living in India to link their PAN and Aadhaar cards. Undertaking this essential step will help enjoy a smoother documentation process.

 

Now that you know the difference between the Aadhaar and PAN card along with their importance, ensure that you link both yours before the deadline on September 30, 2021. Remember to visit Bajaj Markets to know more about Aadhaar and PAN cards or to fulfil your credit needs!

In summary, PAN and Aadhaar Card are two valuable documents that every individual should possess. With efforts underway to ensure that every individual residing in India links their PAN and Aadhaar Cards, an individual can also register for a PAN Card by using their Aadhaar Card.

 

Additionally, the Aadhaar card is also a commonly accepted document for identification when applying for a home loan. People who are looking for a home loan online may secure one by visiting the Bajaj Markets website. This platform has partnered with multiple lenders who provide home loans at attractive interest rates.