The government on Tuesday proposed to make the Aadhaar card mandatory for filing income tax returns and applying for a permanent account number (PAN), something that will come into effect from 1 July.
The rule was moved through an amendment to the Finance Bill, that is currently being discussed in Parliament. Union Finance Minister Arun Jaitley is expected to reply on the Finance Bill on Wednesday.
This move comes along the heels of making the Aadhaar mandatory to avail several other services, including mid-day meals and receiving cash rewards.
While the Aadhaar has been optional for filing income tax returns for a couple of years, the “challenge will be for foreign nationals who pay taxes in India. We will have to see the amendment to understand its implications,” Hindustan Times quoted Kuldip Kumar, head of personal tax at PwC India as saying.