In a significant move to curb welfare fraud, the Maharashtra government has been granted access to Income Tax Return data to verify beneficiaries of the Ladki Bahin Yojana. With over 2,200 ineligible government employees already identified, this data-driven shift aims to ensure that only truly deserving women from economically weaker backgrounds receive the ₹1,500 monthly aid.
Welfare Under Watch: Maharashtra to Use Income Tax Data to Identify Fraud
The Maharashtra government, through a notification by the Central Board of Direct Taxes (CBDT) dated June 3, 2025, can now access Income Tax Return (ITR) data of citizens to weed out fraudulent claims under its flagship Mukhyamantri Mazi Ladki Bahin Yojana. This scheme provides ₹1,500 or more per month to eligible women from low-income households. The move is a landmark in the digital integration of welfare and tax administration, aimed at enhancing accountability.
The notification authorizes the Secretary to the Government of Maharashtra, Women and Child Development Department, to access tax data under Section 138 of the Income Tax Act, 1961. This clause allows income tax information to be shared with government bodies in the public interest.
The decision comes after the startling revelation by Maharashtra Women and Child Development Minister Aditi Tatkare that over 2,200 government employees had illegally availed benefits under the scheme, despite clearly being ineligible.
Who’s In, Who’s Out: Understanding the Eligibility Filter
As the scrutiny intensifies, it becomes imperative to understand who qualifies for the Ladki Bahin Yojana. The scheme is designed for:
- Women aged 21 to 65 years who are residents of Maharashtra.
- Only one eligible woman per family, provided she is either unmarried or is a widow/divorced/abandoned/destitute.
- Annual family income should not exceed ₹2.5 lakh.
- The beneficiary must have her own bank account linked to Aadhaar.
Who is not eligible:
- Women whose family members are income tax payers, or have an annual income above ₹2.5 lakh.
- Households with regular government employees, retired pensioners, current/former MPs/MLAs, or owners of four-wheeled vehicles (excluding tractors).
- Those already availing similar welfare benefits from other schemes.
However, contractual workers, voluntary workers, or employees from external agencies with income below the prescribed limit may still qualify.
This digital crackdown represents a tectonic shift in how welfare distribution is policed. For decades, leakages in social schemes have plagued state finances and denied the rightful beneficiaries their due. The use of Income Tax data will help the government cross-check real income and employment status, eliminating “ghost” or ineligible claimants.
About the author – Prakriti Jha is a student at National Forensic Sciences University, Gandhinagar, currently pursuing B.Sc. LL.B (Hons.) with a keen interest in the intersection of law and data science. She is passionate about exploring how legal frameworks adapt to the evolving challenges of technology and justice.