At the beginning of this fiscal year, the government of India made it mandatory for individuals to provide their PAN card and Aadhaar details when investing in schemes like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), and others. This move was made to prevent money laundering and tax evasion, as well as to promote transparency in investments. In this article, we’ll delve into the specifics of why PAN and Aadhaar have become necessary for investing in these schemes.
What are PAN and Aadhaar?
Before we dive deeper, let’s first understand what PAN and Aadhaar are. Permanent Account Number (PAN) is a unique 10-digit alphanumeric code issued by the Income Tax Department of India. It is used to track an individual’s tax payments and acts as a proof of identity. Aadhaar, on the other hand, is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI) that serves as a proof of identity and address.
Why are PAN and Aadhaar required for investing in PPF, SSY, NSC, and other schemes?
The government of India has made it mandatory for individuals to provide their PAN and Aadhaar details when investing in PPF, SSY, NSC, and other schemes due to the following reasons:
Preventing money laundering and tax evasion
PAN and Aadhaar details are used to track an individual’s financial transactions and income. This helps the government to identify any discrepancies or anomalies in the income earned and taxes paid by individuals. By making it mandatory for individuals to provide their PAN and Aadhaar details, the government aims to prevent money laundering and tax evasion.
Promoting transparency in investments
By providing their PAN and Aadhaar details, individuals can easily track their investments and the returns earned from them. This promotes transparency in investments and ensures that individuals are aware of the returns they’re earning from their investments.
How to link PAN and Aadhaar for investing in PPF, SSY, NSC, and other schemes?
To invest in PPF, SSY, NSC, and other schemes, individuals need to link their PAN and Aadhaar details. Here’s how to do it:
- Visit the Income Tax Department’s e-filing website.
- Click on the ‘Link Aadhaar’ option.
- Enter your PAN, Aadhaar number, and name as mentioned in the Aadhaar card.
- Enter the captcha code and click on the ‘Link Aadhaar’ button.
- Your PAN and Aadhaar will be linked.
Conclusion
PAN and Aadhaar have become mandatory for investing in schemes like PPF, SSY, NSC, and others in order to prevent money laundering and tax evasion, as well as to promote transparency in investments. Individuals can easily link their PAN and Aadhaar details by following the simple steps mentioned above. It’s important to remember that providing PAN and Aadhaar details is a legal requirement when investing in these schemes, so make sure to do it before making any investments.
