Indian government has made Aadhaar mandatory for filing income tax returns (I-T Returns) from the July, 1st next financial year including a must document for obtaining new PAN (Permanent Account Number). Government has made amendments in finance bill for these purposes.
Aadhaar, which is the unique number issued by the Unique Identification Authority of India (UIDAI) is now a must document for filing of income-tax returns. This is made mandatory for tracking the Tax envision mainly and obtaining the PAN Card. This will be very helpful in tightening law against tax evaders and drive against black money.
Government has made it clear that from 1 July, each taxpayer will have to quote Aadhaar while filing income-tax returns and applying for a PAN. They have also made it clear that existing PAN holders will have to disclose their Aadhaar numbers to the IT authority. If any individual doesn’t intimate the Aadhaar number, the PAN allotted to the person shall be deemed invalid.
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Due to linking of Aadhaar with PAN will flush out tax evaders who have multiple PAN. All the taxpayers who do not have an Aadhaar number are required to apply for Aadhaar and quote their Aadhaar enrollment number. The finance bill is expected to pass by last week of march.
[box type=”info” ]The government also removed provisions in the income-tax act that made tax collection at source mandatory for high-value cash purchases above Rs2 lakh to facilitate this new cap.[/box]
Government has done a lot of work to curb the black money menace including Demonetization drive, Anti black money law, benami Act and now Aadhaar for PAN and IT returns.
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Government already made Aadhaar mandatory for availing of government subsidies through the Aadhaar (targeted delivery of financial and other subsidies, benefits and services) Act, 2016. This is mandatory even when there is no direct outflow from the government exchequer.
Government also proposed cash transactions above Rs2 lakh illegal.The penalty for a violation would be a fine equivalent to the value of the transaction.
