Income Tax Exemption: The Finance Ministry has exempted the income of the Unique Identification Authority of India (UIDAI), which issues Aadhaar, from payment of income tax for 5 years till the financial year 2027-28. The Central Board of Direct Taxes ( CBDT ) under the Ministry of Finance has issued a notification to this effect. The Income Tax Department operates under the control of CBDT. According to this notification, grants/subsidies received by the authority from the Central Government, RTI fees, tender fees, sale of scrap, fees/membership including PVC cards, service charges for verification, enrollment, and updating of information, interest on fixed deposits and bank deposits will be exempt from income tax for five years.

This notification will be applicable for the assessment years 2024-2025, 2025-2026, 2026-2027, 2027-2028 and 2028-2029. This means that there will be no tax on the income earned by the authority during the financial year 2023-24 to 2027-28. However, this notification will be effective only when UIDAI will not engage in any commercial activity, and the nature of its activities and specified income will remain unchanged throughout the financial year.

UIDAI is responsible for issuing a unique identification number 'Aadhaar' to citizens in the country. It has been constituted under the provisions of the Aadhaar Act, 2016 to ensure compliance with the Aadhaar Act and make rules and regulations by the Act.