A leading news daily reports changes are proposed in the Income Tax Act as well as Prevention of Money Laundering Act for making Aadhaar mandatory for registering a company for carrying out business activities or NGO.
For it top management personnel's Aadhaar ID shall be required mandatorily for registration of companies as well a partnership firms. Consequently, the otherwise promoters and directors of the company who indulged in forming shell companies, with the practice shall be easily traceable and all such instances can be averted.
The move is aimed at curtailing black money in the system and the government is trying to bring in companies with over Rs. 2 lakh cumulative transactions on an annual basis in its net PAN is already a mandatory ID for carrying business activities.
Know all places where Aadhaar is to be furnished mandatorily.
And now after about 10 places where Aadhaar has been made mandatory as a verification ID or for availing social benefit schemes, business to would before becoming operational will need a valid Aadhaar ID.
The move is in line with the government's mission to curb illicit practices in the system and in a recent move has disqualified 1,06,578 directors of shell companies.