Aadhaar Card Must for Filing Income Tax Returns (ITR)

By | January 1, 2018

The government is able to function properly and make progress, thanks to the taxpayers of the country. Every individual who is earning is supposed to file tax returns on their income. Every time we purchase anything, we are required to pay different taxes along with the goods purchased, be it grocery, movies or fuel. These taxes are then used for the betterment of the country and its individuals.

Aadhaar Card Mandatory For Filing Tax Returns

Aadhaar Mandatory For Filing Tax Returns

Different policies that are being implemented for public healthcare, senior citizens, as well as the uplifting of the poor are feasible because of the tax-payers money.

How people are beating the system?

To fill income tax an individual is required to have a PAN (Permanent Account Number) card. However, it is quite possible for individuals to hide their actual income in order to not pay taxes by using multiple PAN cards. Yes! Different PAN cards can be issued to an individual.

Taxes are to be filed according to the tax slabs, with people having an annual income of 2.5 lakh per annum exempted from paying any tax. Thus an individual having 2 or more PAN cards can file returns without paying any tax (showing 2.5 Lakh/annum income in all of them). In this way, individuals are hoarding money and government is losing on taxes which can be used for the benefit of the nation and its individuals.

Aadhar Card Must for Filing Income Tax Returns

How can Aadhar card help the government with taxes?

Aadhar is a unique 12 digit number allotted by the Government of India through its UIDAI scheme. Not only does it contain an individual’s personal details but also has biometric data like fingerprints and iris scan. Since everything is computerized, duplication of an individual’s details though possible, but replication of biometric details is impossible. Thus an individual can only have 1 aadhar card.

Compared to PAN card, AADHAR is a more genuine representation of an individual. Therefore, the government has decided to include AADHAR along with the PAN card of an individual for filing income tax returns (ITR) from this financial year.

Why a hue and cry over AADHAR for tax return?

Much hullabaloo has been made over Aadhar being made compulsory for filing ITR from July 1, 2017, with a case being filed in Supreme Court of India (SC) to challenge this provision by the government. This is so because, earlier, aadhar card was not mandatory, according to the SC’s order.

However, according to the government, non-enrollment of aadhar by any individual by July 2017 will make their PAN card invalid. This has caused mass panic among people, who now have to make a bee line in different aadhar enrollment centres or have to desperately wait for an aadhar camp.

Another batch of individuals, who were hiding their actual income are panicking as now, they won’t be able to file tax returns under different PAN cards.

Aadhar Card for IT Returns

With aadhar being linked along with your PAN, any individual won’t be able to file returns under multiple PAN cards. Through this, the government is hoping to generate huge amount of (previously stashed and unpaid) taxes, thereby probably lowering price rise. 🙂

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