Is Aadhaar Card is Mandatory for PAN,EPF or Bank

Last Updated : Jan. 4, 2025, 2:55 p.m.

An Aadhaar Card is a valid ID you can use across India. People often wonder if an Aadhaar Card is necessary. For instance, you'll need an ID for booking flights or hotels, as these places check your identity when you check in or board a plane. Not everyone has a passport or driver's license for ID and address proof.

That's where the Aadhaar Card comes in—it confirms both your identity and where you live. Since Aadhaar involves biometric and demographic checks, it's tough to fake. Here’s why it’s essential:

Why Do You Require an Aadhaar Card?

Aadhaar, driving licenses, and passports are the main documents for address and ID proof. Unlike the PAN card, which only shows your birth date and name without an address, Aadhaar covers all these bases. Not everyone drives or travels abroad, making driving licenses and passports less common.

Aadhaar is free to get, unlike other IDs that cost money. It’s also accepted everywhere in India. The government uses it to keep track of demographic data, making it essential for everyone.

Is it Mandatory to Have an Aadhaar Card?

The Supreme Court of India has stated that the Aadhaar card cannot be mandatory for all situations. However, the government can require it for certain actions like opening bank accounts, filing income tax returns, verifying mobile numbers, and getting a PAN number.

Despite legal challenges, Aadhaar is now required for many government programs to prevent misuse of funds and reduce corruption. Most government subsidies now need Aadhaar verification to ensure they are sent directly to the bank accounts of the rightful recipients.

While Aadhaar has become a crucial form of identification, with about 1.13 billion issued out of India's 142 crore population, it hasn't reached everyone yet. People who do not have an Aadhaar can still use other forms of ID like PAN cards, driving licenses, or passports for photo and address proof.

Where Aadhaar is Mandatory

• For iron ore or limestone workers.

• In government programs like the Supplementary Nutrition Program, and for those receiving subsidized food grains.

• In various government schemes and initiatives like the Grih Kalyan Kendra Scheme and the National Mission for Empowerment of Women.

• Aadhaar is also required for e-panchayat training and for college students applying for central scholarships.

• The Soil Health Card and Soil Health Management schemes now need Aadhaar.

• Additionally, if you want to get supplementary meals at creches, you must have an Aadhaar card.

• For victims of the Bhopal Gas Tragedy.

• Necessary when filing income tax returns or applying for a new PAN card.

• Aadhaar is required for the Maternity Benefit Program and the Integrated Child Protection Scheme.

• Women who want to access vocational training, loans, and other programs must have an Aadhaar card.

• Disabled children aged 6-14 who qualify for benefits under the Sarva Shiksha Abhiyan also need to have an Aadhaar.

• Linking Aadhaar with bank accounts allows for money transfers using the Aadhaar number.

Is Linking of Aadhaar with PAN, Bank Account, or EPF Mandatory?

Linking with PAN: Anyone who has been assigned a Permanent Account Number (PAN) and qualifies to get an Aadhaar must link their PAN to their Aadhaar according to Section 139 AA of the Income Tax Act 1961. If you don't link your PAN with your Aadhaar, your PAN will become "inoperative."

Linking with Bank Account: Under the rules set in 2019, if you want to get any benefit or subsidy from government programs mentioned under section 7 of the Aadhaar Act, you must link your Aadhaar to the bank account .

For other banking services, Aadhaar is a commonly used document for identity verification, but it's not mandatory. If you prefer not to use Aadhaar, you can provide other valid documents as allowed by the Reserve Bank of India. In such cases, linking your Aadhaar with your bank account is optional.

Linking with EPF: To file an online claim for your EPF, you must link your UAN with Aadhaar . Additionally, your employer can only submit ECR challans and deposit funds into your EPF account if it is connected to your Aadhaar card.

Benefits of Aadhaar Card

• An Aadhaar Card can be used as an Address Proof, Identity Proof, and Age Proof.

• It is a universally accepted document across India by all institutions.

• You will need an Aadhaar for LPG Subsidies and LPG Connections.

• If you are appearing for government competitions, you will need an Aadhaar.

• Aadhaar Card is Mandatory for Subsidies on Ration and Kerosene.

• Pensioners also need an Aadhaar Card.

• You will need an Aadhaar to open a Bank Account.

• Aadhaar Card is needed for Death Certificates.

• If you are applying for a Passport or renewing it, Aadhaar Card is Mandatory.

• For registering your Marriage, you will need an Aadhaar.

• Aadhaar details have to be mentioned during EPF withdrawals.

Conclusion

Aadhaar plays a critical role in various sectors across India. If you need to open a bank account, file tax returns, or access numerous government services, having an Aadhaar Card is crucial. It simplifies administrative procedures and ensures that benefits are accurately distributed to eligible individuals. Given its widespread necessity and the security it offers through biometric verification, Aadhaar has become a fundamental part of accessing essential services and entitlements in India.