Make PAN a part of Aadhaar

As Aadhaar becomes all encompassing, the government should consider doing away with PAN cards

rahul

Rahul Dass | June 12, 2017 | New Delhi


#Arun Jaitley   #merger   #PAN cards   #Aadhaar   #finance bill  


With the supreme court upholding the Aadhaar and PAN card linkage, it would be a good idea to have one unique number for both identity as well as for financial dealings.

“Parliament in its wisdom thought that one PAN to one person can be ensured by adopting Aadhaar for allotment of PAN to individuals. As of today, that is the only method available i.e. by seeding of existing PAN with Aadhaar. It is perceived as the best method, and the only robust method of de-duplication of PAN database,” said the supreme court.
 
PAN cards are currently needed for cash transactions that exceed Rs 50,000. Buying jewellery above Rs 2 lakh and while making big deposits in banks, one needs to state the PAN.
 
As many as 1.08 billion Indians now have Aadhaar and by the end of this year, almost everybody will have this unique number.
Now, that Aadhaar will be seeded with the PAN card, a way needs to be found to have one common number.
Admittedly, Aadhaar and PAN are two different things.
 
Aadhaar is particularly useful for those below the poverty line as they can now become part of the formal banking system. It is an important effort towards financial inclusion. But, one needs to remember that Aadhaar does not collect financial details and does not track transactions of people.
 
The PAN card is handy for the tax authorities as they can now keep track of all financial dealings of all PAN holders.
Merging these two could be feasible and make life a lot easy for the honest taxpayers. 
 
Over the next couple of years, with bank accounts being seeded with Aadhaar number, PAN could gradually become redundant.
 
 In April, finance minister Arun Jaitley had justified the changes in the Finance Bill to make Aadhaar mandatory for filing tax returns and getting a PAN. He told the Lok Sabha the government deliberately adopted the step to check tax evasion by those having multiple PAN cards.
 
“It has been mandatory for every person to quote their Aadhaar number after July 1, 2017 when: (i) applying for a PAN, or (ii) filing their Income Tax returns. In case a person does not have an Aadhaar, he will be required to quote their Aadhaar enrolment number, indicating that an application to obtain Aadhaar has been filed. Every person holding a PAN on July 1, 2017 and who is eligible to hold an Aadhaar, will be required to provide the authorities his Aadhaar number, by a date and in a manner notified by the central government. A failure to provide this number would result in the PAN number being invalidated, and the person would be treated at par with anyone who has not applied for a PAN. The government may exempt persons from this provision through a notification,” said an analysis by PRS legislative research.
 

Comments

 

Other News

Corona warriors to “flush the virus” in Mumbai

Even as humanitarian support is pouring in to help distressed migrants amid Covid-19 pandemic and the lockdown, civil society organizations and NGOs are working for sanitation of community toilets which have become breeding source of virus infection. Every community toilet has 20 seats. Each

How lockdown was used to shore up health infrastructure

India, completing about two months of lockdown to protect against the spread of the Novel Coronavirus, has made good use of the time to improve health infrastructure, the government has said. Countering media reports “about some decisions of the government regarding the lockdown implem

Railways resume services from June 1

As India begins to learn to live with Covid-19 and come out of nearly two-month long lockdown, regular train services are set to resume from June 1 in a graded manner, even as more ‘shramik’ special trains are planned. The railway ministry, in consultation with the health ministr

Covid-19: India’s mortality rate lower than global figure

In the battle against Covid-19, India has managed to keep the mortality rate low at 0.2 deaths per lakh population, compared to some 4.1 deaths for the same population worldwide. Moreover, a total of 39,174 patients have been cured, registering a recovery rate of 38.73% which is improving continuously.

Nobel laureates to advise Sapio Umbrella on fighting Covid-19

Sapio Umbrella, a unit of government advisory firm Sapio Analytics, has received support from Nobel Laureates Dr Michael Levitt and Colonel H R Naidu Gade in form of advisory engagement in strengthening its data driven decision support system for Covid-19. Sapio is providing data-driven sol

Covid-19: Nobel laureates, world leaders call for $1 tn fund to protect children

Eighty-eight Nobel laureates and world leaders have come together as part of ‘Laureates and Leaders for Children’ and called for the global attention towards children during Covid-19 lockdowns and its aftermath. The Dalai Lama, Archbishop Desmond Tutu, Prince Ali Al Hussein, Leym



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter