Transcript AADHAAR for PAN Number Authentication

1
Presented by
July-2013, IIM Indore
2



The Unique Identification (AADHAAR) is a 12 digit Number,
which identifies a resident, will give individuals the means to
clearly establish their identity to public and private agencies
across the country.
AADHAAR Number is provided during the initiation process
called enrolment where a resident’s demographic and
biometric information are collected .
Uniqueness of the provided data is established through a
process called de-duplication.
3


A process wherein AADHAAR Number, along with other
attributes, including biometrics, are submitted to the Central
Identities Data Repository (CIDR) for its verification on the
basis of information or data or documents available with it.
AADHAAR authentication service only responds with a
“yes/no” and no personal identity information is returned as
part of the response. In case of ‘no’, the reason for mismatch
is returned.
4



Permanent Account Number (PAN) is unique
alphanumeric combination issued to all
juristic entities identifiable under the Indian
Income Tax Act 1961.
It is issued by the Indian Income Tax
Department under the supervision of the
Central Board for Direct Taxes (CBDT) and is
almost equivalent to a national identification
number.
It also serves as an important ID proof.
5





The PAN is unique, national, and permanent. It is unaffected by a change of
address, even between states.
This number is almost mandatory for financial transactions such as opening a
bank account, receiving taxable salary or professional fees, sale or purchase
of assets above specified limits.
The primary purpose of PAN is to bring a universal identification key factor for
all financial transactions and indirectly prevent tax evasion by keeping a track
of monetary transactions of high net worth individuals.
PAN number is 10 digit with structure is as “AAAAA9999A”
First five characters are letters, next 4 numerals, last character letter.
6


It is mandatory to quote PAN on return of income, all correspondence with
any income tax authority. It is mandatory to quote PAN on challans for any
payments due to Income Tax Department.
It is also compulsory to quote PAN in all documents pertaining to the
following financial transactions :





Sale/purchase of immovable property valued > Rs. 5 lacs;
Sale/purchase of vehicles
Opening Bank Account
Bank deposit/Fixed Deposit/Withdrawal valued > Rs. 50,000/Sale/purchase of securities> Rs. 1 lacs
As a Proof of Identity (PoI) for availing utility services, etc.
7




Multiple PAN Cards per individuals to evade Tax exemption.
To keep a check on fake, forging or duplicate PAN cards.
Ghost PAN holders for Benami Transactions sales/ Purchase of
land/securities
To increase the volume of Income tax returns filing.


There are 120 million PAN holders but only 35 million files the returns to IT Dept.
PAN provides PoI, whereas Aadhaar provided PoI & PoA.
8

Minimize fake, forged and duplicate PAN cards
by ensuring single & unique PAN card to an
individual in order to track all intended
transactions.
9



An individual can hold only one unique Aadhaar number.
Linking PAN with Aadhaar will eliminate the multiple PAN
numbers by same individuals.
Ghost/fake/forged Aadhaar number cannot be created,
thus eliminating transactions with Ghost/fake/forged PAN
Card.
10
11
12
1)
2)


Seeding AADHAAR number in to PAN database.
Seeding PAN number in to AADHAAR database.
Organic:-During seeding individual shall provide Aadhar
number and matching it with the PAN database.
Inorganic:- Retrieving the data from Aadhaar linked database
of another agency & matching the overlaps with PAN
database. Extract the Aadhaar number of verified individuals
and add in to PAN database.
13
UIDAI
Central Identities Data Repository (CIDR)
Authentication Service Provider (AuSP)
Authentication Service Agency (AUA)
Authentication User Agency/ Sub-AUA
IT Dept/Registration Dept/Bank etc.
Authentication Device
PAN Number User
Aadhaar Number
14


Along with Aadhaar number following details required for authenticationType-1: Demographic Attributes



Type-2: OTP + Demographic
Type-3: Single Factor: Biometric (+Demographic)


E.g.: Fingerprint (+Name)
Type-4: Two Factor: Biometric + OTP (+Demographic)


E.g.:- Name, Date of Birth, Address etc.
E.g.:- Fingerprint + OTP (+Name)
Type-5: Three Factor: 2 Biometrics + OTP (+Demographic)

E.g.:- Fingerprint + Iris + OTP (+Name)
15
Broadly there are following instances for verification of PANAadhaar linkage:1) First Time issuance of PAN card:- (Type 4 or 5)



PoI & PoA is established through Aadhaar verification.
The possession of duplicate PAN card is verified.
2) Periodical Authentication:- During filing the annual return (Type-3)

Verification from Aadhaar will eliminate multiple returns by an individual.
3) During carrying regular Transactions:- (Type-2)

Tracking of Transactions
16






An individual can not hold multiple PAN cards.
Curbing the menace fake, forging or duplicate PAN cards.
Eliminating Ghost PAN holders
Restricting Benami Transactions sales/ Purchase of land/securities
Increase in volume of Income tax returns filing.
Effective Tracking of Transactions occurring at various
locations/organizations.
17




No need to prove individuals identity.
No need to carry PAN card/submit photo copy to avails
services/schemes of Government.
Universal PoI & PoA for an individual.
Linkage of multiple interfaces enables seamless
integration thus eliminating redundant verification.
18







Political risk :- Support from central/state and local governments is crucial.
Adoption risk:- A critical mass is required for success of this project.
Enrolment risk:- Enough touch points are essential for linking.
Risk of scale:- Administration and storage of records by IT department.
Technology risk:- Linking, seeding, Authentication, de-duplication of PAN
numbers and data obsolescence etc.
Privacy and security risk:- Biometric data security is required.
Sustainability risk:-Maintaining the initial momentum over a longer term.
19




Cleaning of PAN Database by seeding with Aadhaar number should be
made mandatory.
PAN can be given to child with age less than 5 years, for which biometric
data is not maintained in Aadhaar database. Therefore, biometric
authentication is a issue.
Inter-operability of PAN database with other organizations such as Banking,
Registration Department etc. is a issue.
PAN is issued by IT department, whereas Registration Department comes
under state government. Co-ordination between these two department is a
issue.
20



The proposed mechanism will fulfill the intended
benefits.
Misuse of PAN card is minimized and most of
transactions can come under preview of Income Tax
Dept.
Pain to citizen is minimized by elimination Burdon of PoI
& PoA
21
PPT downloaded from www.pravinkolhe.com
22