Is Aadhaar mandatory in India?

Question

India Impulse · Accepted Answer

For some things, yes; for most, no. The Supreme Court held in 2018 that Aadhaar can be required for welfare benefits and subsidies funded from the Consolidated Fund, and for PAN and income tax returns — but not by private companies for services, and not for school admission, bank accounts or mobile connections as a legal requirement. The Puttaswamy judgment of 2018 upheld the Aadhaar Act while reading down its scope substantially. Section 7 permits the state to require Aadhaar for benefits, subsidies and services funded from the Consolidated Fund of India — which is why ration, LPG subsidy, scholarships, pensions and scheme payments legitimately require it. Section 139AA of the Income-tax Act, also upheld, requires Aadhaar for obtaining a PAN and for filing an income tax return, with specified exemptions. The Court struck down section 57, which private entities had used to demand Aadhaar. Subsequent legislation permits voluntary Aadhaar authentication by specified entities with the individual's consent and with alternatives available — so a bank or telecom operator may offer Aadhaar-based KYC, but must accept other officially valid documents if you decline. The Court was explicit that no child may be denied a benefit or school admission for want of Aadhaar, and that alternative identification must be accepted where authentication fails. In practice the gap between the legal position and counter practice is wide, and the useful response is to ask for the requirement in writing citing the legal basis. Most institutions produce an alternative when asked that way. Aadhaar is proof of identity and of residence. UIDAI states expressly that it is not proof of citizenship or of date of birth for all purposes.

Sources & provenance