Aadhaar Made Mandatory by Government for Opening Bank Accounts (Download PDF)

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The government has made Aadhaar compulsory for opening bank accounts and for carrying out financial transactions above of Rs. 50, 000 along with new accounts, all the existing account holders also have to link Aadhaar number with the account till 31st December 2017.

  • If any account were not linked with Aadhaar then they will considered as invalid.
  • According to the new modifications in the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, Aadhaar card and PAN is compulsory for companies and partnership firms for all financial transactions of 50, 000 or above.
  • Previously, PAN number or Form 60 was made compulsory for opening accounts for high-value transactions by the PMLA Rules.

Background

  • The Supreme Court has upheld Section139AA of the Income Tax Act, 1961 recently according to which from 1st July Aadhaar number were made compulsory while applying for PAN card or filing income tax returns as constitutionally valid.
  • Finance Act, 2017 has introduce Section 139AA (1) of the I-T Act, 1961 according to which Aadhaar/Enrolment ID is compulsory required when filling the income tax returns with effect from July 1, 2017.
  • Section 139AA (2) of the I-T Act says that persons who have PAN card as on the 1st day of July 2017 and eligible for Aadhaar will must have to intimate their Aadhaar and is they would fails to do so, the PAN of that person shall be consider as invalid.
  • The Supreme Court has given its support to the Section 139AA (1) and has forsed partial stay for the time being to Section 139AA (2) pending resolution of the other cases prior to the larger bench of the Supreme Court.

- Published/Last Modified on: June 24, 2017

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