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Aadhaar Linkages case: Sibal points out the many ways data can be compromised

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The hearings on Aadhaar and its various linkages and privacy and security issued attached to them continued before the Supreme Court constitution bench of Chief Justice Dipak Misra and Justices A K Sikri, A M Khanwilkar, D Y Chandrachud and Ashok Bhushan on Wednesday (February 7).

The following deliberations took place:

11:34am: Senior advocate Kapil Sibal continued his submissions. He talked about identity information which requires authentication as per section 2(c) of the Aadhaar Act. This means Aadhaar number along with biometric or demographic information. He argued that this part has been wrongly drafted. It means that only

these two pieces of data can be submitted for the purposes of authentication.

He said that while photograph is included in biometric, it has been excluded in code biometric. He said that no alternative information can be given. Aadhaar Act is only for Aadhaar information and nothing else, Sibal said.

“Hence, for every Aadhaar card, the individual’s photograph will also be present,” he said. “There is a definition of identity information in the Act itself.”

At that Justice Ashok Bhushan pointed out:  “The alternatives are for double-checking.”

Sobal said: “It’s a legal argument and not political argument that you’re reducing me to one identity. Section 2(m) is not inclusive, it is exhaustive as pointed out by justice Chandrachud.”

Justice Sikri said: “If I don’t have the Aadhaar number, I still exist…” to which Sibal agrees, saying “we are more than just an Aadhaar number.”

Sibal says: “Section 8(3)(c) proposes that only three methods of identity information should be available. Secondly, there is no centralised database. Regulation 4 refers to modes of information. It gives you an idea what of authentication is. There is no other mode. Regulation 5 has to be read with 8(3)(c).”

He said: “If you have your authentication on your smart cards, your biometrics cannot go anywhere, hence no one can steal anything. That’s what most jurisdictions do, especially in the UK.”

Justice Bhushan said: “That regulation 5 has an overriding affect.”

Ibal said: “The act says that the number qualifies for the identity information. That means I can establish my identity via Aadhaar. Once I establish my identity information with the help of Aadhaar, no one can question me.”

“Read the Act in consonance with the provisions of the constitution,” says Sibal.

“If we accept your submissions, the constitutional validity of this becomes substantive,” says justice Chandrachud. “Under this statute, you have to collect information, which is not a state activity. Use of Aadhaar number to establish identity by the state or a body corporate under the law… that answers all of the ‘who’ and ‘how’ questions.”

Sibal says: “It must be assured that my property is protected. It is licensed out to agencies, etc. Now, because it is my property, i.e. my information, hence it must be protected and I must be assured that it is done.

“In a digital world my property cannot be retrieved, unlike in the physical world. If I have lost my property, in the physical world, it can be retrieved. If not, compensation would be provided. In the digital world, nothing can be protected. We’re not dealing with the physical world,” submitted Sibal.

“The digital world will know more about you than you would know; that’s where the world is heading towards,” he said. “In the USA, it is said that the digital world is like a Jurassic Park.”

“Data can arguably be divided into two types, Meta data and messages. Aadhaar is linked to every journey. Meta data is the information minus the messages. You’re making me vulnerable,” said Sibal.

“Unnecessary information is being stored because of Aadhaar and the vulnerability is the violation of my rights. The point is, an individual’s data who is not a criminal, should not be in the public domain.”

Justice Sikri gave a counter situation where a member of a particular airline travels even the airline retains the data about your traveling trend. What is so different about Aadhaar being linked to your railway ticket?”

Sibal continued: “CDR becomes a single target for cyber criminals for external and internal attacks according to an RBI report. A recent RBI report has explained that CDR has been targeted. According to this, because of Aadhaar there is a readily available platform for cyber criminals. It’s a staff paper/report. We need to have safeguards.”

“There’s a need for care. It does not straightaway talk about vulnerability,” Justice Chandrachud commented. “Every centralised depository can be hacked and using Fevicol and wax, by making a mould, anyone without even any technical knowledge can derive your fingerprint.”

At that Sibal said: “Once the national based information is compromised, we cannot do anything. Any criminal can take a defence that my fingerprints were stolen during every criminal trial,” Sibal said.

“By creating a 3D image of a fingerprint, once infringed through using a fingerprint app as in Android phones, the infringer can use it anywhere he wants, Sibal said.

“Airtel was benefitted by using latest Aadhaar, where new bank accounts were opened and the bonus/benefits the people earned were transferred into that Airtel bank. Hence, Aadhaar wouldn’t be a reliable source of information for the benefits to them,” Sibal said.

“And most benefits are received by aged people. Biometrics of children and the aged cannot be relied upon, as they don’t come to be very accurate. Further, it’s not reliable in cases of disabled people. The statute contemplates breaches.”

12.47 pm: “It will encourage bribery as big corporate competitors will pay money to get information, Sibal said. “The larger the data base, greater the chance of rejection of Aadhaar enrolment.

1.03pm: Adhaar matter adjourned to February 8.

– India Legal Bureau

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India News

Union Budget 2026: What the middle class gains despite no income tax slab changes

Union Budget 2026 retains income tax slabs but offers indirect relief to the middle class through TCS cuts, simpler tax filing, cheaper medicines and higher job-creating expenditure.

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Union Budget 2026: what the middle class gains despite no income tax slab changes

Union Budget 2026 may not have delivered direct income tax relief to salaried taxpayers, but the government has introduced several indirect measures aimed at easing financial pressure on middle-class households.

While tax slabs remain unchanged, the Budget outlines steps to simplify compliance, reduce taxes on overseas spending, lower the cost of essential medicines, and support job creation through higher public spending.

Income tax status quo continues

The government has retained the existing income tax framework for individuals. Annual income up to Rs 12 lakh continues to remain tax-free, and with the Rs 75,000 standard deduction, effective tax-free income rises to Rs 12.75 lakh.

No changes have been announced in income tax slabs, signalling policy continuity rather than immediate relief for salaried taxpayers.

Compliance relief and tax rationalisation measures

A key focus of Budget 2026 is reducing compliance burdens and improving the taxpayer experience.

The government has proposed a reduction in Tax Collected at Source (TCS) on overseas tour programme packages to 2%, down from the earlier rates of 5% and 20%. TCS under the Liberalised Remittance Scheme (LRS) for education and medical expenses has also been cut to 2% from 5%, providing relief to families sending money abroad for essential purposes.

To ease return filing pressure, timelines have been staggered. Individual taxpayers filing ITR-1 and ITR-2 can continue to file returns till July 31, while non-audit businesses and trusts will now get time till August 31.

Protection for small investors

The Budget proposes taxing all share buybacks as capital gains instead of dividends, a move aimed at protecting minority retail investors.

In another relief measure, interest awarded by Motor Accident Claims Tribunal (MACT) to individuals will be exempt from income tax, and the applicable TDS will be removed.

A single-window system will also be introduced for submitting Form 15G and Form 15H through depositories for TDS on dividends and interest, simplifying compliance for senior citizens and small savers.

Cheaper medicines and essential products

Healthcare costs may ease slightly as the government has announced duty exemptions on about 17 cancer medicines. Personal imports of medicines for seven rare diseases will also be allowed duty-free.

In addition, customs duty relief has been extended to critical components used in the manufacture of microwave ovens, television equipment, leather goods and footwear, which could help moderate consumer prices.

Job creation through higher spending

The government has raised capital expenditure to over Rs 12 lakh crore, with allocations for railways, tourism, logistics and technology sectors. These investments are expected to support employment generation and long-term economic activity, indirectly benefiting middle-class households.

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India News

Budget 2026 balances high capex and growth, says PM Modi

Prime Minister Narendra Modi said Union Budget 2026 strikes a balance between high capital expenditure and strong growth while reinforcing reforms and fiscal discipline.

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pm modi

Prime Minister Narendra Modi on Saturday said the Union Budget 2026 strikes a fine balance between high capital expenditure and sustained economic growth, calling it a roadmap for long-term national development.

Speaking after Finance Minister Nirmala Sitharaman presented her ninth consecutive Budget, the prime minister said the proposals reflect a vision of trust-based governance and a human-centric economic framework. He added that India is not just focused on being the fastest-growing economy but is working towards becoming the world’s third-largest economy.

PM Modi said the Budget also reinforces India’s strong global standing and will provide fresh momentum to the country’s reform agenda. According to him, the measures announced will energise what he described as India’s “reform express”.

The prime minister highlighted the Budget’s focus on promoting tourism in the northeastern region, noting that it would create new opportunities and support regional development.

On fiscal management, the finance minister retained the states’ share in the divisible pool of central taxes at 41 per cent. She announced that Rs 1.4 lakh crore has been provided to states as Finance Commission grants for 2026–27, in line with the recommendations of the commission.

The Finance Commission, chaired by Arvind Panagariya, had submitted its report to the President in November 2025 after consultations with states and Union Territories, several of which had sought a higher share.

Sitharaman pegged the fiscal deficit for 2026–27 at 4.3 per cent of GDP, lower than the revised estimate of 4.4 per cent for 2025–26. She also said the debt-to-GDP ratio is projected to decline to 55.6 per cent in 2026–27 from 56.1 per cent in the previous fiscal.

A gradual reduction in the debt burden will help free up resources for priority sectors by lowering interest outgo, the finance minister said.

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India News

India to build seven high-speed rail corridors, Finance Minister announces

Union Budget 2026-27 unveiled seven high-speed rail corridors and a dedicated east-west freight corridor to boost sustainable transport and economic growth.

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India to build seven high-speed rail corridors, Finance Minister announces

Finance Minister Nirmala Sitharaman, presenting the Union Budget 2026-27 in Parliament on Sunday, announced that India will develop seven high-speed rail corridors connecting key cities across the country.

These corridors, described as ‘growth connectors’, aim to promote environmentally sustainable passenger transport systems. The proposed high-speed rail links will connect:

  • Mumbai and Pune
  • Hyderabad and Pune
  • Hyderabad and Bengaluru
  • Hyderabad and Chennai
  • Chennai and Bengaluru
  • Delhi and Varanasi
  • Varanasi and Siliguri

In addition to passenger rail, Sitharaman announced a dedicated east-west freight corridor connecting Dankuni in the east with Surat in the west. This initiative, along with the operationalisation of 22 new national waterways over the next five years, is intended to enhance multimodal transport and reduce logistics costs.

“These initiatives will strengthen freight movement and support sustainable cargo transportation,” the Finance Minister said.

The Budget also emphasizes infrastructure development in cities with populations over five lakh (Tier II and Tier III), which have emerged as key growth centres. Sitharaman further proposed a public capital expenditure of Rs 12.2 lakh crore for the financial year 2026-27.

She outlined that the Union Budget is guided by three core responsibilities—accelerating economic growth, fulfilling aspirations, and ensuring equitable access to resources for families, communities, and regions.

Describing the plans as part of a broader reform agenda, she added, “The ‘Reform Express’ is on its way.”

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