It’s the beginning of the new Financial Year 2017-2018. Time to start your tax planning for the new financial year. Good tax planning is always done early and not at the last minute. What better day to do your tax planning than today?
The Government passed the Finance Bill 2017 in the Lok Sabha. One of the amendments in the Finance Bill 2017…..From July 1st it is compulsory for you and all citizens to disclose Aadhaar number, while filing income tax returns. You will also have to link Aadhaar to PAN Card by December 31st 2017.
If you don’t link PAN Card to Aadhaar, your PAN card will be invalid. Why did the Government do this? Many citizens have two or more PAN Cards, which helps them evade tax. You and other citizens can conceal income and avoid paying tax. If PAN Card is linked to Aadhaar, you cannot evade taxes.
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You and many citizens in our country, may have multiple PAN Cards. These multiple PAN Cards help you evade tax. The Government asked you and other citizens to link Aadhaar with PAN Card, but got a poor response.
Now, the Government has made linking Aadhaar to PAN Card compulsory, by December 31st 2017. This will weed out (remove), all fake and duplicate PAN Cards. Aadhaar is a biometrically verified identification. It is not possible for you to have duplicate Aadhaar cards. Now, if your Aadhaar is linked to PAN Card, you can have only a single PAN Card.
The Finance Bill has also made another amendment. The Government has proposed a cap on cash transactions at just INR 2 Lakhs. Now, you will be forced to make payments using digital methods and these leave a trail…. Your high value purchases in real estate, gold jewelry and luxury goods can be easily tracked with your PAN Card linked to Aadhaar. Can you still evade taxes?
Let’s say you and many citizens have multiple PAN Cards. You can easily avail loans from banks and financial institutions using different PAN’s. Then….just default on the loans. Linking Aadhaar to PAN Card can stop this malpractice.
Now, if you avail a loan from a bank, you will have to submit the PAN Card which is linked to your Aadhaar. Aadhaar is biometrically verified and loan defaulters have no place to hide.
Yes, Aadhaar can be a game changer and catch tax evaders and prevent loan defaults. Do you think tax evaders have any escape routes? The Government needs to manage the implementation smartly and close all doors on tax evaders. Be Wise, Get Rich.
Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.