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Central Govt to impose penalty for misquoting Aadhaar

Union Finance Minister Nirmala Sitharaman had proposed interchangeability of PAN and Aadhaar while presenting her maiden Union Budget allowing quoting of India’s national biometric ID for cash transactions of more than Rs 50,000 and all other purposes where traditionally income tax PAN number was a must. But you may have to pay a hefty fine every time you provide the wrong information.

“You will be liable to pay a penalty of Rs 10,000 every time you provide the wrong number,” Hindustan Times reported.

According to the Hindustan Times report, the penal provision is expected to be applicable from September 1 this year after amendments to relevant laws and the subsequent issuance of a notification, Hindustan Times reported.

Sitharaman in her Budget speech on July 5 said for the ease and convenience of tax payers, “I propose to make PAN and Aadhaar interchangeable and allow those who do not have PAN to file Income Tax returns by simply quoting their Aadhaar number and also use it wherever they are required to quote PAN.”

Meanwhile, the government through an amendment to the Aadhaar Act has allowed the use of India’s national biometric ID by states for devolution of funds through their schemes.

The Lok Sabha and the Rajya Sabha approved amendments to the Aadhaar law to allow voluntary use of the 12-digit unique number as ID proof for obtaining mobile phone SIM cards and opening bank accounts.

Alongside this, the government also inserted a new clause allowing the use of Aadhaar data by states for implementation of their schemes.

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