Aadhaar mandatory for joining boards and filing tax returns

The government is mandating biometric authentication for several Companies Act-related transactions, including joining the board of directors of a company, or filing its returns by chartered accountants and company secretaries. This authentication would be done using Aadhaar cards.

In the past, Ministry of Corporate Affairs (MCA) has come across several instances of people being appointed directors either without knowledge or without receiving a Director Identification Number (DIN), which is required for joining a board. This was being done by forging their signatures, which would not be possible once Aadhaar verification comes into place.

Also read: The beginner's guide to Aadhaar Pay

Once the verification is mandated, a DIN would need filling up the form online which would then be authenticated using biometric devices.

A team from Infosys is working on a new mechanism for this authentication, which would in the coming years be expanded to include all MCA-related work.

Starting this year, the I-T department has also mandated Aadhaar for issuing PANs, so that no individual can hold multiple PANs to evade taxes.

Also read: Linking Aadhaar cards to bank accounts mandatory, says I-T department