With an objective of providing unique identity to every Indian, Aadhaar card was launched in 2009. The project is implemented by Unique Identification Authority of India (UIDAI). The benefits of Aadhaar are many and especially poor people can get benefits from the following (there are many):
- Jan Dhan Yojana, cooking gas subsidy
- Healthcare schemes such as RSBY, Janashri Bima Yojana, Aam Aadmi Bima Yojana
- Social security schemes
- Food and nutrition schemes such as mid-day meals, food security
We’ll now explore how having Aadhaar card will help you in financial transactions apart from the above listed ones:
- Buy Insurance Policy: Submitting KYC documents is not required. For buying policy, visit the insurance company website and select the online policy. Then enter all the required details. After entering Aadhaar number, some of your personal information will be fetched automatically and displayed on the screen. You can then buy insurance policy online without submitting physical copies of KYC documents.
- E-verifying income tax: By doing this, there won’t be a need to file Income tax return verification form physically to the Income tax department office in Bengaluru. This is for the individuals with Aadhaar card verified by the electronic verification certification (EVC) system. For doing this:
- You will have to link Aadhaar and PAN on the income tax website: www.incometaxindiaefiling.gov.in.
- Go to e-filed returns and choose form, click on e-Verify
- Next step is generating Aadhaar OTP for verifying return
- Once you receive an OTP, you can complete the remaining process.
The existing option of sending ITR-V form manually to the IT department is time consuming. And with Aadhaar linking, time will be saved as verification will be done electronically.
- Mutual funds investment: With Aadhaar it is possible to invest online when PAN card is not KYC compliant. For doing this, individual needs to visit KYC registration agency website and provide required details such as PAN card, asset management company name, details of bank account through which funds transaction will take place. Provide Aadhaar card number and 10 digit mobile phone number. System will send OTP on this mobile. Enter this OTP on Aadhaar authentication section of the website, upload attested copy of e-Aadhaar. You can also perform this process on the website of mutual fund company.