Aadhaar mandatory for filing ITR to avoid tax evasion: Jaitley

Jaitley said the cap on cash transactions is being reduced to curb generation of black money and the move to introduce electoral bonds is for cleansing the political funding

Making Aadhaar number mandatory for filing of Income Tax returns is necessary to curb tax evasion and frauds, the government said today while rejecting the Opposition demand for a relook at the move.

Finance Minister Arun Jaitley replied in the affirmative when a Biju Janata dal member questioned in the Lok Sabha whether the government was "forcing" the people to have Aadhaar number by making it mandatory.

Jaitley said the cap on cash transactions is being reduced to curb generation of black money and the move to introduce electoral bonds is for cleansing the political funding.

As parties like BJD opposed the move to make Aadhaar mandatory for filing of Income Tax returns and making PAN application, Jaitley said linking of Aadhaar with PAN was necessary as people have multiple PAN cards and are using it as a tool for tax evasion.

"Aadhaar has biometric details, so its chances of misuse become minimal. When the country has so much technology, and when it is being put to use, then why create such a hue and cry about it? It is an anti-evasion measure which will benefit the country. So the government considers it right to implement it," he said.

Jaitley said the UIDAI had been conceptualised by the United Progressive Alliance and the National Democratic Alliance government is putting it to use with 98 per cent adults or more than 108 crore people in India having been issued Aadhaar number.

"We have kept a provision that a person who does not have Aadhaar can say I have applied for Aadhaar. We can't allow people to say I will not make Aadhaar, but through multiple PAN cards will continue to evade taxes," he said.

Illustration: Uttam Ghosh/Rediff.com