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Aadhaar may become the only identity (ID) card in future, while making it mandatory for filing of Income Tax returns is necessary to curb tax evasion and frauds, Finance Minister Arun Jaitley said on Wednesday
He said the Aadhaar-based Unique Identity (UID) system had been conceptualised by the previous UPA government.
After two-day debate, the Lok Sabha on Wednesday passed the Finance Bill.
"Aadhar made mandatory because we have cases of some people have five-five PAN cards. These can be used for tax evasion, that's why Aadhaar has been made compulsory," the Finance Minister told the House.
"Aadhaar has biometric details, so its chances of misuse become minimal," he added.
Referring to the demonetisation drive to check corruption, Jaitley said data mining done by Central Board of Direct Taxes (CBDT) had showed up 18 lakh cases whose deposits did not match with their income and who were then notified by mail or messages.
Communist Party of India-Marxist leader Mohammad Salim wondered if an Aadhaar Card cannot be duplicated. "If duplicate PAN (Permanent Account Number) Card can be made, can't a duplicate Aadhaar card be made," Salim asked.
Jaitley alswo said the amendment to reduce the ceiling on cash transactions is to curb generation of black money and the move to introduce electoral bonds is for cleansing the political funding.
"To encourage digital economy and to discourage cash economy, I had proposed in Budget that there will be a ban on cash transactions of over Rs 3 lakh. I am making it Rs 2 lakh by an amendment," he said.