Govt. proposes to make Aadhaar mandatory for filing of IT returns

Union Finance Minister Arun Jaitley on Wednesday proposed to make Aadhaar mandatory for filing of the Income-Tax returns as well as for obtaining the Permanent Account Number (PAN), thereby allowing only cheque contributions to electoral trusts.

He also announced capping the limit for cash transactions to Rs. two lakh from April 1 from the earlier proposed Rs. three lakh.

"We are moving towards a time when there will be no shadow economy but some are still seeing virtues of cash transactions," said Jaitley in the Lok Sabha, adding no arbitrary power will be given to the Tax Department.

"In the current fiscal, we had a target of 16.25 lakh crore direct and indirect tax, which was revised to Rs. 17 lakh crore," Jaitley added while stating that the government will achieve the record target by the year end.

Complimenting both the houses for passage of the Goods and Services Tax (GST) law, Jaitley said that the GST Council could be India's first truly federal decision making body.

"So far, there have been around 12 meetings of the GST Council and we have reached a consensus on almost all contentious issues," he added.

"The government took the decision and the people's political verdict on it is in front of you," Jaitley said on the issue of demonetisation raised by the opposition.