Budget may make quoting Aadhaar number compulsory for filing ITRs: Report

Beginning next financial year 2017-18, when you file your income tax returns, don’t be surprised if your form has field to quote the Aadhaar number. Yes, the government is working on a plan to make it mandatory for all individuals to quote their Aadhaar number while filing the returns starting next financial year.

Along with this, linking all the bank accounts with the unique identification number has already been in the works for quite some time, said a report in the Business Standard.

 While work on both fronts has been steadily progressing, the report suggests that the government is actively looking at amending the Income Tax Act, 1961, in this budget.

In fact, the decision to link Aadhaar to a bank account and to make it compulsory for filing I-T returns was already taken in May last year.

During the meeting in May, the PMO said, “Aadhaar number of individuals and office bearers of entities should be obtained in I-T returns, starting assessment year 2017-18. Necessary provisions may be made under the Income Tax Act/rules,” the BS report said.

The government on Thursday said it plans to make Aadhaar essential, although not mandatory, for subsidised foodgrain under the National Food Security Act and asked states to link them with ration cards at the earliest.

The Centre also said that states have promised to install digital payment system at ration shops by June.
Under the food law, over 80 crore people get 5 kg wheat or rice per person per month at Rs 2-3 per kg costing exchequer Rs 1.4 lakh crore annually.

The move is part of the efforts to promote digital transactions and less cash economy post the demonetisation of Rs 500 and Rs 1,000 notes.

Prime minister Narendra Modi had in a speech on 30 December had proposed a biometric payment system using Aadhaar platform while he exhorting citizens to adopt digital currency from the new year.

After card payments and e-wallets, payments through the new system can be made by just a thumb impression after the bank account is linked with Aadhaar gateway, he said at a DigiDhan Mela, an event organised to celebrate the success of digital currency push.


[Copyright by FP-Front Post]