Is Linking AADHAAR to PAN mandatory to file IT Returns
Aadhaar mandatory for filing of returns
The Indian government is taking all the necessary steps to keep in check of tax evasion issues. Government already introduced steps to minimize the black money through demonetization. In the same context the finance minister Arun jaitley has proposed to make aadhaar card mandatory for filing of income tax returns. Earlier linking of aadhaar card is optional now it is mandated. This will be effect from 1st July.
As per recent amendments all the existing tax payers will have to link their PAN cards with aadhar cards by the end of December. Those who failed to disclose the same then their PAN and income tax return will deemed to be invalid. Aadhaar card is also mandatory to mention in application form for PAN cards by new applicants. All the tax payers who does not have aadhaar card will have to enroll for the same and mention the same while filing of income tax returns. The Labour ministry has also issued a notification making aadhaar mandatory in order to open Employee Provident Fund account.
Supreme court has also extended use of aadhar card on a voluntary basis to avail government schemes like Pradan Mantri jan Dhan Yojana, Mahatma Gandhi National Rural Employment Guarantee Scheme, Employee provident fund and pension schemes and other social welfare scheme.
This amendment will results in challenge for Non residents Indians staying outside India who are liable to file the income tax returns due to some transactions which are specified as they are required to mention aadhaar card for filing of returns if not the return and PAN card will be invalid. The government of India is expected to provide relief to NRI and foreigners in these regards for smooth filing of returns.
The main reason for mandatory of aadhaar number is it helps in more authentic tax filing and improved in tax collections. These move helps in identifying tax evaders and people having multiple PANs as aadhaar is backed by fingerprint and iris scanners. The government is also making necessary arrangements for linking of aadhaar card for specified financial transactions. This will helps the government to keep track of every financial transaction made.
Supreme court of India has also stated in judgment that aadhaar is not mandatory for claiming the benefits under transfer of domestic LPG subsidy. However it is not mandatory now but it will mandate in future so its better to link the same before.
We can say that government is taking absolute steps closer to give aadhaar a greater importance in every financial transactions. There is even possibility that it may sooner or later replace the PAN.Another major possibility would be that your tax related details will automatically updated in tax return you may just have to accept the same or deny the same.However this may lead to lot of changes in present laws in order to make all this possible.