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LATEST NEWS UPDATES | Tax reason for Aadhaar

Tax reason for Aadhaar

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published Published on Apr 11, 2018   modified Modified on Apr 11, 2018
-The Telegraph

New Delhi: The Centre on Tuesday told the Supreme Court that the mandatory linking of Aadhaar with bank accounts and PAN cards was intended to screen genuine tax payers from dishonest elements evading taxes.

The government made the comments while trying to allay fears that people could be harassed for money-laundering offences.

Appearing for the Centre and the Aadhaar-issuing Unique Identification Authority of India, additional solicitor-general Tushar Mehta told a five-judge constitution bench that the newly introduced Section 139AA of the Income Tax Act, which provides for mandatory linking of PAN with Aadhaar cards, was constitutionally valid and could not be declared as violative of Article 21 as urged by a batch of petitioners who have challenged the constitutional validity of Aadhaar.

The constitution bench has Chief Justice Dipak Misra and Justices A.K. Sikri, A.M. Khanwilkar, D.Y. Chandrachud and Ashok Bhushan.

The petitioners had argued that making Aadhaar mandatory for filing tax returns or opening bank accounts presumed guilt or criminality especially in the context of the amendment to the Money Laundering Rules and a person not complying with the provision could be prosecuted under the Prevention of Money Laundering Act.

"This presumption which is sought to be made by the petitioners has no basis in law and fails to conceptually appreciate the necessary jurisprudence," Mehta told the bench.

"Requiring Aadhaar is akin to screening genuine persons from the dishonest ones or vice versa. Even assuming without admitting that requirement of Aadhaar affects the right to privacy in some manner, it is a reasonable restriction which is permissible under the Constitution and does not presume any guilt or criminality," he added.

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The Telegraph, 11 April, 2018, https://www.telegraphindia.com/india/tax-reason-for-aadhaar-222579?ref=india-new-stry


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