Aadhaar May Soon Become Mandatory To File Income Tax Returns, Obtain PAN
This is among the 40 amendments the government has proposed to the Finance Bill, 2017.
India’s biometric data-based unique identification number, Aadhaar, may soon become mandatory for filing income tax returns and obtaining a permanent account number (PAN).
This is among the 40 amendments the government has proposed to the Finance Bill, 2017, which is expected to come up for parliament’s consideration on Wednesday. BloombergQuint has accessed a copy of the proposed amendments from the office of a Member of Parliament.
If this proposed amendment is passed, the mandatory use of Aadhaar to file income tax returns will become effective July 1, 2017, the document says.
The government has also proposed that taxpayers provide their Aadhaar numbers to the Income Tax Department before July 1, failing which their PANs will become invalid.
"In case of failure to intimate the Aadhaar number, the permanent account number shall deemed to be invalid and the other provisions of this Act shall apply, as if the person had not applied for the allotment of the permanent account number,” according to the copy of the proposed amendments sourced by BloombergQuint.
Those who do not have the Aadhaar number must produce the enrolment ID from the Aadhaar application form in their income tax returns as well as PAN applications, it adds.
The proposed amendment includes an exemption for certain sections of the public from these provisions.
According to a report by wire agency PTI, opposition parties strongly opposed these amendments in the Lok Sabha on Tuesday, saying the government was tagging along non-tax bills in the legislation to make them Money Bills, obviating the need for a nod from the Rajya Sabha where it does not have a majority yet.
The government, which has issued Aadhaar numbers to more than 111 crore people so far, has made the biometric ID mandatory for a range of welfare and public services, ranging from mid-day meals for children to central board examinations.
Meanwhile, the Supreme Court is yet to decide on multiple pleas/cases that argue against the use of Aadhaar beyond welfare delivery amid privacy concerns.