Aadhaar, a 12-digit identity number, is now to be linked mandatorily with PAN - both already issued and applied for. The government has come out with an infographic explaining the rationale behind the urgent requirement of linking PAN with Aadhaar.
Why link Aadhaar with PAN
"The uniqueness of PAN is achieved by conducting a de-duplication check on all already existing allotted PAN against the data furnished by new applicant. Under the existing system of PAN, only demographic data is captured," it said from its Digital India account on microblogging site Twitter.
(Read: Still not linked Aadhaar with PAN? How to do it)
Benefits of Aadhaar-PAN linking
Linking Aadhaar with PAN database "allows a robust way of de-duplication as Aadhaar number is based on biometric attributes of fingerprints and iris images".
The Aadhaar number is issued by the UIDAI or Unique Identification Authority of India. On the other hand, PAN is a 10-digit alphanumeric number allotted by the income tax department to individuals and entities. The Income Tax Department has in the recent past stepped up its efforts to encourage assessees to link their PAN with Aadhaar.
Seeding of Aadhaar into PAN database will allow the taxman "to weed out any undetected duplicate PANs" as well as "facilitate resolution of cases of one PAN allotted to multiple persons", the government added in its Twitter post.
The Digital India Project is a government initiative, aimed at connecting all gram panchayats by broadband internet, promoting e-governance and transforming the country into a connected knowledge economy.