Entering Wrong Aadhaar Number Will Invite Rs 10,000 Penalty: What Is The Reason?
Misquoting your Aadhaar number or entering the wrong Aadhaar in official documents such as tax return files or KYC can now invite heavy penalty.
Fine of Rs 10,000 can be imposed for such cases.
What is the reason behind this?
Rs 10,000 Penalty For Misquoting Aadhaar Number
Govt. is all set to amend a major rule, which related with the Income Tax Act.
Once implemented, Govt. will impose a fine of Rs 10,000 for entering wrong Aadhaar number, wherever this number is required for official purpose,
This amendment will be done under Section 272B of the IT Act.
Note here, that penalty of Rs 10,000 would be imposed both on the person whose Aadhaar number has been mentioned, and the person who authenticates the Aadhaar number.
But Why Penalty of Rs 10,000 For Wrong Aadhaar Number?
During the Budget announcement, Finance Minister Nirmala Sitharaman had announced that effective September 1st, 2019, citizens of India can use Aadhaar number instead of PAN Card, while filing IT returns and while performing a high-value transaction such as buying a home or car, or international travel, investments etc.
The recent announcement of penalty upto Rs 10,000 for misquoting Aadhaar is directly linked with this update.
By announcing a heavy penalty of Rs 10,000, Govt. is making sure that people don’t use wrong Aadhaar number to get away from paying the necessary taxes.
As per an unnamed official from Ministry of Finance, before the penalty is levied, there would be a hearing for the same, where the accused person would be given a chance to justify his/her actions.
Is This Penalty Of Rs 10,000 Necessary?
The decision to use Aadhaar instead of PAN Card makes sense: Compared to just 220 million PAN Card holders, there are 1.2 billion Aadhaar cardholders.
Hence, it becomes easier to open a bank account, get a new SIM card, file taxes. Perform high-value transactions and more, with Aadhaar, compared to PAN.
However, at the same time, it becomes crucial to ensure that the correct Aadhaar is entered, so that the Income Tax Dept. can trace the transaction, and collect taxes accordingly.
The penalty of Rs 10,000 for entering the wrong Aadhaar number would be imposed effective September 1st, 2019.
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