The government on Tuesday proposed to make Aadhaar Card mandatory for filing income tax returns and also applying for a Permanent Account Number (PAN).
Any application for a Permanent Account Number or PAN, which is a unique ID assigned to each tax payer, will also have to state your Aadhaar or 12-digit unique ID, which is backed by biometrics like finger prints and iris scans stored in a central repository.
Aadhaar has been gaining ground with several financial transactions being linked to it. Work is already in progress of all bank accounts being linked to Aadhaar number.
Recently, the I-T department had announced a mobile app for paying taxes and tracking of refunds. It had also said it was considering issuing PANs on real time basis using Aadhaar biometric.
Taxpayers will be required to link their PAN cards with Aadhaar numbers; PAN cards not linked to Aadhaar numbers before the July deadline will be deemed invalid, as per the amendments. Those who do not have their Aadhar cards as yet will be required to submit their enrollment numbers.
Moving the Bill, Jaitley spoke in defence of amendments made to 40 acts which had been criticised by Opposition members of the house on a point of order.
He said if a substantial portion of a Bill deals with imposition or abolition of tax, then even if it has other incidental provisions, it can still be introduced as a Money Bill.
A Finance Bill is ordinarily introduced to give effect to the financial proposals of the government for the next financial year.
The new rules kick in starting July, Finance Minister Arun Jaitley said. Because they are amendments to the Finance Bill, the government should have no trouble having them cleared in parliament. The Finance Bill is a Money Bill, for which the Lok Sabha’s clearance is necessary,and the government has a huge majority here.
The Rajya Sabha, where the government is in a minority, cannot reject a Money Bill and any recommendations it offers are not binding.