Difference Between PAN Card and Aadhaar Card Explained
According to a government notice issued in 2017, linking PAN and Aadhaar is compulsory. The government made this decision to make Aadhaar mandatory for tax-paying citizens. In this regard, most taxpayers need to learn the importance of owning an Aadhaar and PAN Card.
Regardless, if you want to know the discussion on a PAN card vs an Aadhaar card, continue reading!
What is an Aadhaar Card?
An Aadhaar is a 12-digit ID system given to all Indian residents. For generating an Aadhaar, authorities will gather your data and store them in their database, which is looked at by the UIDAI (Unique Identification Authority of India).
What is a PAN Card?
A PAN (Permanent Account Number) is a 10-digit number issued by the Government of India to taxpayers. In this regard, the PAN is unique for every taxpayer in India, and these digits play an essential role in performing transactions. In layman's terms, this PAN behaves as a key to store data of all financial holdings of an entity.
Additionally, the Government of India considers both documents essential, so it is mandated to link PAN and Aadhaar cards.
What Are the Differences Between Aadhaar Card and PAN Card?
The detailed tabular comparison between Aadhaar vs PAN is provided below –
| Parameters | Aadhaar Card | PAN Card |
| Authorised by | Unique Identification Authority of India (UIDAI) | Indian Income Tax Department |
| Count of Digits | 12 | 10 (Alphanumeric) |
| Data | Photographs, Ten fingerprints, Iris scans, Name, Address, Date of Birth, Signature | Account Number, Date of Birth, Address, Name, Signature |
| Purpose | Identifying and storing data of every Indian to stop fraud and identity crimes. | To stop tax evasion by identifying financial transactions. |
| Function | Identification required for plans and welfare schemes. | To identify financial transactions. |
| Residency | Provided to Indian citizens and residents only | Can be provided to non-Indians who are willing to conduct business in India |
A PAN's primary utilisation is to monitor an individual's financial transactions. The Income Tax Department issues this number under the supervision of the CBDT, and PAN also ensures that every individual abides by their duty of paying taxes.
On the other hand, an Aadhaar Card is issued by the Unique Identification Authority of India (UIDAI). With Aadhaar, the Indian government is targeting to keep a database with information about every Indian citizen. Besides personal information, Aadhaar collects fingerprints, photographs, and iris scans. Hence, Aadhaar makes it effortless to identify citizens by cross-referencing data from their system.
Hence, both PAN and Aadhaar are vital documents for Indian citizens. Also, there are considerable differences between PAN and Aadhaar cards, which are explained above. Furthermore, you should also know that Aadhaar is also a mode of identification document and is also accepted in most cases.
FAQs about the Differences between PAN Card vs Aadhaar Card
Who issues PAN and Aadhaar cards?
The PAN and Aadhaar card is issued by the Income Tax Department of India and the Unique Identification Authority of India, respectively.
Is it mandatory to have an Aadhaar card?
Aadhaar is a preferred document for identification, but it is not a mandatory document to hold.
I Is Aadhaar and PAN card for 18+?
A child can have an Aadhaar card, however, the biometric update is necessary after a certain age. Besides, parents can also apply for PAN cards on behalf of the minors.