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Aadhaar-PAN linkage meant to plug tax leaks, says SC (Relevant for GS Prelims, GS Mains Paper II)

Slamming a tendency in the country to evade taxes, the Supreme Court referred to the mandatory linking of Aadhaar to the Permanent Account Number (PAN) and Income Tax returns as an instance of the government’s efforts to bring “new laws to stop leakages.”

The petition
The court was hearing petitions challenging the constitutionality of Section 139AA inserted in the Income Tax Act by the Finance Act, 2017.

The provision makes Aadhaar mandatory for getting a PAN. Possession of an Aadhaar card is necessary for the continuing validity of an existing PAN and for filing returns under the income tax law.

(Adapted from The Indian Express)

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