Use Aadhaar Or Pan Card For Tax Filing; Aadhaar Ok To Use For Opening New Bank Account, Getting New SIM Card
There has been major announcements and addition in the first budget session held under the Modi government’s second tenure. Huge expectations pondered over the new finance minister Nirmala Sitharaman and many eagerly waited for her verdict on this session’s budget.
We bring to you news on these grounds. Sitharaman, on July 5 announced in her Budget speech that the Aadhaar card could be used interchangeably with the PAN to file income tax returns (ITA). Also, the Lok Sabha on July 4 passed the Aadhaar & Other Laws (Amendment) Bill, 2019 that proposes to allow voluntary use of Aadhaar for opening bank accounts and procuring mobile phone connections, along with other details.
Aadhar can Now Be Interchanged with PAN Card for ITA Filing
In her Budget speech on July 5, the new finance minister Sitharaman announced that Aadhar card could soon be used in place of Pan card for filing income tax returns. Currently under the Income Tax Act, one must submit their Aadhaar number while applying for a PAN card and for submitting their income tax returns. This means that they need to have both of them to file an ITR.
Doing so, making Aadhar and PAN interchangeable will allow those who do not have PAN to file Income Tax returns by simply quoting their Aadhaar number and also use it wherever they are required to quote PAN. The finance ministry has also taken a step to track high-value transactions by making it mandatory to provide the quoting and authentication of PAN/Aadhaar for certain prescribed transactions.
Sitharaman also said that Aadhaar card for NRIs with Indian passports will be issued after their arrival in India, without waiting for the mandatory 180 days, which comes as a great news for the NRIs.
Aadhar can Now be Used for Opening Bank Accounts
The Lok Sabha on Thursday passed the Aadhaar & Other Laws (Amendment) Bill, 2019. This Bill introduce by the Union Minister of Electronics and Information Technology, Ravi Shankar Prasad seeks to amend Aadhaar Act 2016 with the Indian Telegraph Act 1885 and the Prevention of Money Laundering Act 2002.
According to this bill, Aadhar can be used for opening bank accounts and procuring mobile phone connections voluntary. It also proposes to give children an option to cancel their Aadhaar number after they turn 18, as this amendment addresses privacy and security concerns.
The Bill also provides for a Rs 1-crore penalty and a jail term for private entities for storing Aadhaar data. There are currently 123 crore people using Aadhar and their biometrics are saved in a secured manner in the Indian machinery.
Aadhar is getting appreciation globally and many countries are showing interest to follow the India’s digital identification scheme. Mr. Prasad said, the low cost technologies can advance the country and Aadhaar is one such technology developed by our scientists and IT professional.