Aadhaar Card that is issued by the UIDAI (Unique Identification Authority of India) have benefited people in many ways like, it became very easy to apply for passport, getting subsidy on LPG, applying for driving licence, in case your child is missing, opening a bank account and now even to apply for a PAN card. Aadhaar Card contains every single details of a person and they do not require multiple documents to apply for any of the above.
Aadhaar Card Is Now Mandatory to Apply for PAN Card
In the Budget of 2017, the Government of India decided that Aadhaar card Number should be made mandatory to apply for PAN (Permanent Account Number) card, and also to file Income Tax returns, so that the limit on cash transactions could be lowered from 3 lakhs to 2 lakhs.
As per the Budget 2017, Finance, Defense and Corporate Affairs Minister Arun Jaitley announced that from 1st July, 2017, Aadhaar Card will be compulsory to apply for PAN card and for those who fall in the income tax bracket, to file their tax.
Mr. Arun Jaitley took an immediate step to this effect and moved an amendment in the Finance Bill draft 2017, which was then taken up by LS (Lok Sabha). This budget had initially proposed that cash transactions exceeding Rs 3 lakhs should be banned, but the Revenue Secretary, Mr. Hasmukh Adhia, raised an objection against it and decided to lower the ceiling.
A Special Investigation Team is keeping an eye on the black money, and in addition to the above mentioned limit, the Income Tax Department is imposing a ban on accepting or making any advance of Rs. 200000 or more for any purchase of an immovable property. Above all, PAN card is also made mandatory for any type of purchases made over the value exceeding Rs. 1 lakh.
Multiple benefits of having an Aadhaar Card Number
Recently, the Central Government announced that Aadhaar Card is also mandatory for those beneficiaries who wish to benefit themselves under the Pradhan Mantri Kaushal Vikas Yojana for the development of skills, and also the Self Employment Scheme for Rehabilitation of Manual Scavengers.
National Food Security Act to avail the benefit of acquiring subsidised grains, MGNREGA to get jobs and Employees’ Pension Scheme to get pension without any hassle. Apart from these, the Centre has listed down 31 other schemes, where the Aadhaar Card number should be made compulsory.
Reason for making Aadhaar Number Mandatory
The main reason for demonetisation was to eliminate the black money and also to put a ban on the flow of black money in future. If the limit of cash transactions gets reduced in the economy, then all the hard work of our Prime Minister, Narendra Modi, would be successful and his goal to make India a better and a safe place to live in would be fulfilled.
This is the reason, why Aadhaar number is made mandatory for fling of ITR and applying for PAN card from 1st July, 2017, and if a person fails to declare his Aadhaar number, then his PAN card would stand invalid.
Till date, Aadhaar details was optional for filing income tax, but now the main challenge would be for the foreign nationals who still pay taxes in India. The Government still has to understand and make certain amendments in this regard, and would specify certain exemptions for Aadhaar mandatory rule.
Aadhaar-based e-KYC facility
In recent days, Income Tax department had come up with a new mobile app, so that a person can easily pay their taxes and track their refunds. They are also working on issuing PAN card using Aadhaar’s e-KYC facility on a real time basis. But, this proposal is still at its initial stage of deliberation.
This facility would enable every entity or person, who wishes to apply for PAN card, to verify their biometric identification such as address, date of birth etc. by using their thumb impression.
Till date, over 111 crore Aadhaar card unique identification numbers have been generated, and people have used it in multiple purposes like acquiring new SIM card for mobile, getting rid of hazardous steps to open a new bank account, payments of electricity bill etc.