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180 million PAN (Permanent Account Number) cards to be defunct by 31st March

Those holding more than one PAN (Permanent Account Number) card may have to worry a little. 180 million PAN (Permanent Account Number) cards, at least, will become inoperative by 31st March 2021 if not linked with Aadhaar Numbers.

In a country, where more than 1.3 billion people live, it is surprising that only about 15 million people pay Income-Tax. A report by Hindustan Times quoted an official that around 49.8 million people file Income Tax Return. But they either show zero tax liability or claim the full amount of tax paid through Income Tax Return.

If a PAN card is not linked with Aadhaar, there is a possibility that multiple PAN cards may be obtained by the same person. But, once a PAN card is linked with the Aadhaar, it is almost impossible to obtain multiple PAN cards in the name of a single person as only one PAN card can be linked to one Aadhaar Number and there will be no possibility of a person having multiple Aadhaar Numbers .It is worthy to mention that an Aadhaar number is a unique number generated on the basis of the biometrics of a particular person.

Multiple PAN cards are used to hide the high-value transactions .As of now, only 327.1 million PANs are linked with Aadhaar. This means that many such duplicate PAN cards will directly come under the scanner and it may tantamount to one-third of the total number of issued PAN cards .

It is also expected that the government may track expenditure patterns of individuals who spend a large sum of money on luxuries but under-report their income in order to evade tax. Annual Information Return (AIR), now known as Statement of Financial Transaction (SFT), provided by IT laws will be used to track prescribed high-value transactions undertaken by taxpayers.

It may be recalled that on 13th August, Prime Minister Narendra Modi ,unveiled India’s first Charter of Taxpayers’ rights and duties and he had also appealed to the public to introspect on the fact that only 15 million people in a population of 1.3 billion pay income tax.

Naveen Wadhwa, Deputy General Manager at Taxmann, a consultancy, said in a report by Hindustan Times that the proposed move of the government to expand the list of expenditure will not cause any inconvenience to honest taxpayers.

If you have not linked your PAN card with your Aadhaar yet, then CLICK HERE to link it on the official website of UIDAI

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