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

On a personal note: DIVINE

An underground rapper who grew up on Mumbai streets, Divine spins his music around his environment and poverty. His breakout single, ‘Meri Gully Mein’, along with fellow rapper Naezy caught Bollywood’s attention. The Hindi film ‘Gully Boy’ is inspired by their lives and gr

The role model for an IAS officer

Anil Swarup, an IAS officer of Uttar Pradesh cadre who retired in 2018, is a model bureaucrat who retained his optimism right till the end of service and exemplified dedication and commitment. His excitement at the opportunities that a job in the IAS provided is evident on every page of his new book publis

Reform of the civil services: At home and away

The question of reform of the civil services has been debated extensively at all levels at least over the last five to six decades after independence. Indeed, it was soon perceived that the Indian Administrative Service (IAS) may not be well equipped to deal with the problems of an emerging developing coun

The greatest challenge for any government

Shouting vengeance at all and sundry while wriggling out of holes of our own making seems to be our very special national characteristic. Some recent instances are illustrative of this attribute. A number of business tycoons with thousands of crores of unresolved debts have fled abroad with the government

The mysterious case of CBI’s legality

The Central Bureau of Investigation (CBI) came into existence, based on a Resolution of the home ministry, dated April 1, 1963 – a sheer coincidence that it also happens to be April Fool’s day. Over the past few months, we have seen the CBI live up to its founding day with great zeal, being i

The Evolution of Modi

Gujarat was passing through a turbulent phase in the 1980s. The decade began middle class agitations against new reservation policies, and the caste friction turned communal under the watch of chief minister Madhavsinh Solanki, alienating majority of urban population on both counts. The ground was ripe for

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter