Difference Between PAN and Aadhar Card
The government issued a notice which made the linking of PAN and Aadhaar compulsory through the Finance Act of 2017. The linking of the two documents was supposed to be done. This decision was made to make an individual's Aadhaar mandatory when filing their taxes. Most individuals are not aware of the necessity and benefits of owning a PAN and Aadhaar Card.
What is PAN?
Permanent Account Number (PAN Card ) is a number that is issued to an individual who pays their taxes. It is a 10-digit alphanumeric number that plays a vital role in a majority of various transactions that are made by an individual on a regular basis.
What is Aadhaar?
A 12-digit unique identifier Aadhaar is an ID system which is used by Indian residents and is based on their demographic and biometric data. This personal data of an individual is collected and stored in the databases of the Unique Identification Authority of India (UIDAI).
The government had issued an order that made it mandatory for every taxpaying citizen of India to link their PAN with their Aadhaar Card. This linkage was expected to be done by every individual .
PAN vs Aadhaar
The main purpose of a Permanent Account Number is to track and identify every financial transaction that an individual makes. It is issued by the Income Tax Department under the careful supervision of the CBDT or the Central Board for Direct Taxes. The most important job of a PAN is to ensure that every citizen does their duty of paying their taxes.
An Aadhaar Card is a unique identification number of UID which has been issued by a central government agency operating in India called the Unique Identification Authority of India (UIDAI). The government intends to keep a database containing information about every registered citizen of India. In addition to a person's personal information, it also collects their photograph, fingerprints, and iris scans. With this system of information, it becomes very easy to identify an individual by simply cross-referencing their data with the data in the system.
The main confusion that a lot of people face arises from the fact that both documents are used as Proof of Identity which leads people into thinking that this is their primary use. In fact, both documents are completely different from each other and serve a far more important purpose in an individual's life. With this in mind, let us take a look at some of the differences which are listed below:
Parameters | Aadhaar Card | PAN Card |
Stands For |
| Permanent Account Number |
Also Known As | UID number, UIDAI Number, AADHAR number, UIDAI card | |
Country of Usage | India | India |
Authorizing Department | Unique Identification Authority of India (UIDAI) | Indian Income Tax Department |
Terms of Use | Voluntary | Mandatory for Financial Transactions |
Number of Digits | 12 | 10 (With a combination of both numbers and alphabets) |
Collected Data |
|
|
Primary Purpose | To identify and document every Indian citizen to prevent identity crimes and fraud | To prevent tax evasion and to help in identifying every financial transaction that is made |
Main Function | Identification needed for welfare schemes and plans | Identification for the Income Tax Department as well as identify every financial transaction made |
Residency | Issued to residents and Indian citizens only | A PAN Card can be issued to individuals who are not Indian citizens but who conduct any type of business in India |
In summary, PAN and Aadhaar Card are two valuable documents that every individual should possess to carry out various activities smoothly in day-to-day life. With efforts underway to ensure that every individual residing in India links their PAN and Aadhaar Cards, the government is keen to make the lives of the people of India a lot simpler. With this link, an individual can register for a PAN Card by using their Aadhaar Card.
Get More Information About PAN Card
FAQs on Difference between PAN and Aadhaar Card
- What details are included in an Aadhaar Card?
An Aadhaar Card includes details like the individual's name, date of birth, gender, address, photograph, and a unique 12-digit Aadhaar number.
- What is the format of a PAN Card number?
A PAN Card number consists of 10 alphanumeric characters, such as ABCDE1234F.
- Can one person have multiple PAN or Aadhaar Cards?
No, an individual can have only one PAN Card and one Aadhaar Card. Multiple cards are illegal and subject to penalties.
- Is it mandatory to link PAN with Aadhaar?
Yes, it is mandatory to link PAN with Aadhaar for filing income tax returns and to avoid deactivation of the PAN Card.
- Can an Aadhaar Card be used as proof of identity and address?
Yes, an Aadhaar Card can be used as proof of both identity and address for various services and applications.
- Can a PAN Card be used as proof of identity?
Yes, a PAN Card can be used as proof of identity, especially for financial and tax-related transactions.
- What is the main purpose of an Aadhaar Card?
The main purpose of an Aadhaar Card is to provide a unique identity to residents of India and facilitate access to various government services.
- What is the main purpose of a PAN Card?
The main purpose of a PAN Card is to track financial transactions and ensure tax compliance.
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