The Income-Tax (I-T) department in India has decided to take a strict action against those who have not yet linked their permanent account numbers (PANs) to Aadhaar cards despite several reminders. The I-T department might defunct over 180 million PANs, if not linked to Aadhaar by March 31. The strict warning comes in after the I-T department has decided to get hold of tax evaders who are using multiple PANs to conduct high-value transactions.
The mandatory linking of PAN and Aadhaar is to ensure that an individual does not hold multiple PANs.
An I-T official informed the Hindustan Times that there are 50.95 crore PAN card holders in India till June 2020, but only 6.48 crore have filed for income-tax returns (ITR). â€œAround 49.8 million people file ITR. But they either show zero tax liability or claim the full amount of tax paid through ITR,â€ the official added.
Using the Statement of Financial Transaction (SFT), earlier called Annual Information Return (AIR), the I-T department will track those individuals who spend extravagantly on luxuries but underreport their income, thus avoiding to pay large sums in taxes.
All the high-value transactions undertaken by taxpayers will now be under government scrutiny. These details can be checked through entities like banks, financial institutions, mutual funds and credit card companies.
Recently, PM Modi also unveiled the first charter of taxpayersâ€™ rights and duties this August 13, requesting people to introspect that only 15 million people pay income tax in India.
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