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Tag: PAN

  • CBDT Eases TDS Rule In Cases Of Death Of Deductees Before Linkage Of Pan-Aadhaar

    CBDT Eases TDS Rule In Cases Of Death Of Deductees Before Linkage Of Pan-Aadhaar


    New Delhi: The Central Board of Direct Taxes (CBDT) has relaxed the provisions of TDS/TCS in the event of the death of deductee/collectee, before the linkage of PAN and Aadhaar, according to an official statement issued on Wednesday.

    “To redress the grievances of the taxpayers wherein instances have been cited, of demise of the deductee/collectee on or before 31.05.2024 and before the option to link PAN and Aadhaar could have been exercised, the Circular provides that there shall be no liability on the deductor/collector to deduct/collect the tax under section 206AA/206CC of the Act, as the case may be pertaining to the transactions entered into up to March 31, 2024,” an official statement read.

    In view of the genuine difficulties being faced by the taxpayers, the CBDT issued the Circular dated 05.08.2024, and vide the same, the government has relaxed the provisions of TDS/TCS as per the Income-tax Act, 1961, in the event of death of deductee/collectee before linking of PAN and Aadhaar, it added.

    According to the statement, the Circular is in continuation of Circular No. 6 of 2024 issued earlier by the CBDT wherein the date for linking of PAN and Aadhaar was extended up to 31.05.2024 for the taxpayers (for the transactions entered into up to 31.03.2024) to avoid higher TDS/ TCS as per the Act.

    Meanwhile, industry experts have hailed the government’s decision to introduce an amendment to long-term capital gains (LTCG) tax on real estate transactions, saying the move will offer flexibility for sellers.

    Paying heed to the industry’s demand, the government on Tuesday moved an amendment to the Finance Bill 2024, to allow taxpayers to select either a 12.5 per cent long-term capital gains (LTCG) tax rate without indexation or a 20 per cent rate with indexation for property acquired before July 23 this year.

    Experts said this amendment is expected to stimulate investment and sales in the housing market by potentially reducing the tax burden on sellers.



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  • Do Children Need A PAN card? How Can Kids Apply For PAN Card? Know Everything

    Do Children Need A PAN card? How Can Kids Apply For PAN Card? Know Everything


    New Delhi: PAN cards are not exclusively issued to adults; minors may also receive PAN cards for specific uses. According to Section 160 of the Income Tax Act, which states that there is no minimum age requirement to obtain a PAN card, minors are eligible to apply for one. A minor below five is also eligible to apply for a PAN card. Minors cannot, however, apply for a PAN card independently. On their behalf, the parents must apply for a PAN card. When do children need a PAN card?

    When parents invest in the child’s name: When a parent wants to invest in their child’s name, a PAN card is required.

    Make your child a nominee for your investments: If the minor is to be made a nominee on property, or shares, the minor will require a PAN card.

    To open a bank account in your child’s name: When opening a bank account in their child’s name or a Sukanya Samriddhi Yojana account for a minor daughter, parents must provide the child’s PAN card details.

    Minor is financially independent: If a minor is working and needs to file an ITR, they can get a PAN card. Having a PAN card is essential for filing an ITR. 

    How to apply for a PAN card for children?

    PAN cards cannot be obtained by minors on their own. The only people who can apply for a PAN card on behalf of a minor are their parents, guardians, or representatives. Both online and offline applications for PAN cards are possible. The procedures for applying online for a minor’s PAN card are as follows:

    1. Visit the NSDL website and download Form 49A

    2. Enter the applicant’s personal details

    3. Upload the minor’s photographs and other mandatory documents 

    4. Upload the parents’ signature 

    5. Make the payment and submit the form

    6. Receive a receipt number to track the application status

    7. After verification, you will receive the PAN card within 15 days

    Steps to apply for a PAN card for a minor offline

    1. Obtain Form 49A from the official website or the NSDL office

    2. Fill up the form by filling in all the personal information

    3. Attach two photographs of the child and the required documents

    4. Submit the completed form and documents to the nearest NSDL office along with the fee

    5. After verification, the PAN card will be sent to the provided address

    Documents required to apply for a PAN card for minors

    1. Parents’ Address and Identity Proof

    2. Applicant’s Proof of Identity (Aadhaar card/Ration card/Passport/ Driving license/Voter ID card)

    3. Proof of Address (Aadhaar card/Post office passbook/Property registration documents/Domicile certificate)

    Updating PAN Card at Age 18

    The PAN card issued to minors does not include their photo or signature and cannot be used as valid proof of identity. So, upon turning 18, individuals must apply for an update to their PAN card.



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  • PAN-Aadhaar linking: Income Tax Department has important update – link your PAN with Aadhaar card by May 31, 2024 to avoid higher TDS – Times of India

    PAN-Aadhaar linking: Income Tax Department has important update – link your PAN with Aadhaar card by May 31, 2024 to avoid higher TDS – Times of India



    PAN-Aadhaar linking : The Income Tax Department has advised taxpayers to connect their PAN with Aadhaar card by May 31, 2024, to prevent higher tax deductions at source (TDS) or tax collections at source (TCS).
    In a message posted on social media platform X on May 28, 2024, the department stated, “Kind attention taxpayers, please link your PAN with Aadhaar before May 31st, 2024.”

    PAN Aadhaar Linking: Who should do it and how? Step-by-step guide

    The department further explained, “Linking your PAN with your Aadhaar by May 31 ensures you don’t face higher tax deduction/ tax collection under Section 206AA and 206CC of the Income Tax Act, 1961, due to an inoperative PAN for the transactions entered into before March 31, 2024.”
    According to Section 139AA of the Income Tax Act, every person who has been assigned a PAN as of July 1, 2017, and is eligible to obtain an Aadhaar number, must provide their Aadhaar number in the prescribed form and manner.
    Failure to link PAN with Aadhaar will result in the PAN becoming inoperative. However, individuals who belong to the exempted category will not be affected by this provision.
    Also Read | Latest Fixed deposit interest rates in May 24: 7 banks revise FD rates – earn up to 9.1% interest; check details
    To link PAN with Aadhaar online through the e-filing website, follow these steps:
    1. Go to the Income Tax Site – https://www.incometax.gov.in/iec/foportal.
    2. Click on ‘Link Aadhaar’ under ‘Quick Links’. Enter the PAN, Aadhaar number, and name as mentioned in the Aadhaar card.
    3. Provide details such as PAN Number, Aadhaar number, your name on Aadhaar, and your mobile number. If only the birth year is mentioned in the Aadhaar card, tick the corresponding square. Also, tick the box to agree to get your Aadhaar details validated. Click on ‘Link Aadhaar’.
    4. Enter the Captcha code. An OTP will be sent to the registered mobile number. Click the validate button.
    It is important to note that linking Aadhaar and PAN requires paying a fine of Rs 1,000.





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  • PAN, Aadhaar not linked? Penalty deadline for TDS deductors extended – here’s what it means – Times of India

    PAN, Aadhaar not linked? Penalty deadline for TDS deductors extended – here’s what it means – Times of India



    PAN, Aadhaar Card not linked? The income tax department has provided relief to those dealing with taxpayers who failed to link their PAN and Aadhaar by the June 30, 2023 deadline. The department has relaxed the deadline for imposing penalties on such cases.
    Individuals whose PAN became inoperative due to non-linkage faced higher tax deduction at source (TDS) or tax collection at source rates.For example, the TDS on house rent allowance or HRA for individuals with inoperative PANs increased to 20%.
    Many deductors or collectors were unaware of the inoperative status of PANs and continued to deduct or collect tax at the lower rate, resulting in penalties from the income tax department.
    According to a TOI report, following numerous petitions from affected parties, the government has now relaxed the rule. Deductors or collectors are now exempt from any liability for transactions that occurred up to last March, provided the PAN becomes inoperative before the end of May.
    Kuldip Kumar, partner at Mainstay Tax Advisors, was quoted as saying, “This is a big relief to several of those who were required to withhold or collect tax at a higher rate… It is in the interest of the taxpayers to promptly link their PAN with Aadhaar (if not done so far), as they will not get any refund due to them and also continue to lose interest on their tax refunds until such linkage happens.”





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  • No Freezing of Investment Folios Without PAN, KYC, Nomination: Sebi Amends Rules On Physical Securities – News18

    No Freezing of Investment Folios Without PAN, KYC, Nomination: Sebi Amends Rules On Physical Securities – News18


    Amending the circular issued in May, Sebi said that reference to the term ‘freezing/ frozen’ has been deleted.

    Sebi decides to do away with the provision of requiring the freezing of folios without PAN, KYC details and nomination for all holders of physical securities

    The Securities and Exchange Board of India (Sebi) on Friday decided to do away with the provision of requiring the freezing of folios without PAN, KYC details and nomination for all holders of physical securities. The rule has come into force with immediate effect, the capital markets regulator Sebi said in a circular.

    The decision has been taken after receiving feedback from the Registrars’ Association of India and investors. Under the rule, it was mandatory for all holders of physical securities in listed companies to furnish PAN, nomination, contact details, bank account details and specimen signature for their corresponding folio numbers.

    The folios wherein any one of such documents are not available on or after October 1, 2023, is required to be frozen by the Registrars to an Issue and Share Transfer Agents (RTA), Sebi said in May.

    Amending the circular issued in May, Sebi said that reference to the term ‘freezing/ frozen’ has been deleted.

    “Based on representations received from the Registrars’ Association of India, feedback from investors, and to mitigate unintended challenges on account of freezing of folios and referring frozen folios to the administering authority under the Benami Transactions (Prohibitions) Act, 1988 and/or Prevention of Money Laundering Act, 2002, it has been decided to do away with the above provisions,” Sebi said.

    Further, frozen folios were required to be referred by the RTA or listed company to the administering authority under the Benami Transactions (Prohibitions) Act, 1988, and/or Prevention of Money Laundering Act, 2002, if they continue to remain frozen as on December 31, 2025.

    In March, Sebi made it mandatory for all demat account holders to either furnish nomination declarations or opt out of nominations by September 30.

    In a circular on March 28 this year, the Securities and Exchange Board of India (Sebi) said, “Based on representations received from the market participants, it has been decided that the provision mentioned at para 4 of SEBI circular dated June 15, 2022, with regard to freezing of folios, shall come into force with effect from September 30, 2023, instead of March 31, 2023.”

    According to this, failing to nominate may result in the freezing of your mutual fund folio.

    (With PTI Inputs)

    harris
    Mohammad Haris

    Haris is Deputy News Editor (Business) at News18.com. He writes on various issues related to markets, economy and companies.…Read More



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  • Form 26AS Decoded: Here’s How It Plays A Vital Role In Streamlining ITR Filing – News18

    Form 26AS Decoded: Here’s How It Plays A Vital Role In Streamlining ITR Filing – News18


    ITR Filing: About 5.83 crore income tax returns were filed as on July 31 last year, the last day for filing returns for assessment year 2022-23.

    Acting as consolidated tax credit system, Form 26AS plays an important role in all the tax payments made on your behalf by your employer or clients.

    Form 26AS is something you should be aware of if you are a person or a business submitting tax returns. Form 26AS, which serves as a unified tax credit system, is essential in all tax payments made on your behalf by your company or clients. It contains important information regarding Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) from various income sources such as banks and employers.

    What is the significance of Form 26AS, and why should you pay attention to it before completing your income tax returns?

    Let us dissect it and grasp its significance:

    Form 26AS is like an annual statement provided to taxpayers by the Income Tax Department. It’s a summary of your tax information, including how much tax you have paid and any deductions you’ve made. Consider it a full record of all taxes paid against your Permanent Account Number (PAN).

    Also Read: ITR Filing Update: Why You Must NOT Delay Filing Your ITR? Check Latest Update Here

    One key reason to check your Form 26AS is to make sure it aligns with your income tax return (ITR). If there are any differences in the income or TDS figures between Form 26AS and your tax return, the income tax department may send you a tax notice asking for an explanation. The department relies on Form 26AS to analyze and verify your tax information, so any discrepancies can lead to unwanted attention.

    To avoid such notices, it’s important for you to ensure that the entries in your Form 26AS are accurate and belong to you. If you notice any mistakes or mismatches, you should correct them before filing your ITR.

    Apart from reconciling your tax details, Form 26AS serves another essential purpose. Certain transactions, like cash deposits above a specified threshold or buying a house, are required to be reported directly to the Income Tax Department by banks and financial institutions. These transactions appear in your Form 26AS under the Annual Information Return (AIR) section, but only if they exceed the specified limit.

    To download Form 26AS from the TRACES website, follow these simple steps:

    Start by visiting the e-filing website.

    Enter your user ID, which may either be your PAN or your Aadhaar number.

    Note: An error notice will be displayed if the user ID you submitted is incorrect. Give a valid user ID.

    Enter your password.

    The main screen will appear once you’ve logged in. Navigate to the ‘e-file’ section, select ‘Income Tax Returns,’ and then ‘View Form 26AS’ from the menu that appears.

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    Namit Singh Sengar

    Namit is Senior Sub Editor in the business vertical of News18.com. With over five years of experience, he covers personal finance, brands and economy.…Read More



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  • Pan: CBDT to ‘duly consider’ PAN, Aadhaar linking requests where fees paid by June 30 – Times of India

    Pan: CBDT to ‘duly consider’ PAN, Aadhaar linking requests where fees paid by June 30 – Times of India



    NEW DELHI: The income tax department on Friday said it will “duly consider” cases where linking of PAN with Aadhaar is yet to happen despite individuals giving their consent and having paid the fee.
    The last day for linking PAN with biometric Aadhaar on paying a late fee of Rs 1,000 is June 30, 2023. From July 1, 2023, PAN will become inoperative for individuals who have failed to link it with Aadhaar and TDS and TCS will be deducted at a higher rate.
    In a tweet, the income tax department said instances have come to notice where PAN holders have faced difficulty in downloading the challan after payment of a fee for Aadhaar-PAN linking.
    “In this regard, it is to be informed that the status of challan payment may be checked in the ‘e-pay tax’ tab of the portal after login. If payment is successful, then PAN holder can proceed to link PAN with Aadhaar,” it said.
    “In cases where fee payment and consent for linking have been received, but linking has not been done till 30.06.2023, such cases will be duly considered by the Department,” the tweet added.
    If an individual fails to link their Aadhaar and PAN by June 30, 2022 and wishes to link it at a later date, then he/she can inform the tax authorities, and after payment of penalty, the two can be linked.





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  • Experts Explain if a Minor Has to File Income Tax Returns

    Experts Explain if a Minor Has to File Income Tax Returns


    Last Updated: February 11, 2023, 17:19 IST

    This article examines the ITR filing and taxation regulations for minors/children under the age of 18.

    According to tax experts, young people, who have a source of income, including kid influencers, are required to pay taxes on their income just like any other worker.

    When it comes to submitting an Income Tax Return (ITR), age is not a defence. Only tax payers are aware that teens and children must also file tax returns and pay taxes if they get any income. There are, however, some restrictions and exceptions. More than 4800 juveniles under the age of 18 submitted ITR in FY 2022–23 through January 31st, 2023. This article examines the ITR filing and taxation regulations for minors/children under the age of 18.

    According to tax experts, young people, including kid influencers, with a source of income are required to pay taxes on their income just like any other worker.

    Abhishek Soni, co-founder, and CEO of Tax2win, a Fisdom company, states that minors who are under the age of 18 and have money in the form of earned or unearned income or who engage in certain transactions (subject to certain restrictions) are required to pay taxes.

    According to income tax regulations, people under the age of 18 are deemed minors and are subject to a different tax rate. Sujit Bangar, the founder of Taxbuddy, says that minors are not needed to submit their own tax returns, and their income is combined with that of their parents or legal guardians.

    Children and minors may be liable for taxes under the following circumstances:

    Earned money: When kids make money using their specific skills, such as by taking first place in a competition or tournament. The salary amount is also included in this money.

    Unearned income: Amounts that a minor receives as gifts from family members, grandparents, or through investments their parents made in their names, as opposed to amounts that they directly earn.

    Any sum a minor gets must be included in the parent’s income in accordance with Section 64(1A) of the Income Tax Act. The term “clubbing of Income” refers to this. Therefore, taxes on such income will be paid in the same manner as taxes on the income of the parent.

    Read all the Latest Business News here

    Business Desk

    A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings …Read More



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  • PAN Cards Not Linked To Aadhaar Will Expire; Steps To Link

    PAN Cards Not Linked To Aadhaar Will Expire; Steps To Link


    Last Updated: February 08, 2023, 18:50 IST

    Individual PANs not linked with Aadhaar will be declared inactive.

    PAN Aadhaar Link Due Date: All pending income tax returns will also not be processed.

    The Government of India has made Aadhaar and PAN cards essential for some services, including submitting income tax returns.

    The deadline to link PAN and Aadhaar cards was March 31, 2022, but has been extended to March 31.

    Citizens can link their Aadhaar and Pan cards online by paying a small penalty cost. After the new deadline, PAN holders will no longer be allowed to utilise their ten-digit unique alphanumeric number, and all financial transactions connected to PAN would be halted. All pending income tax returns will also not be processed.

    “As per the Income Tax Act, 1961, it is mandatory for all PAN holders, who do not fall under the exempt category, to link their PAN with their Aadhaar before March 31, 2023. From April 1, 2023, the unlinked PAN shall become inoperative. What is mandatory, is necessary. Don’t delay, link it today!” the Income Tax Department wrote in a tweet.

    Citizens were required to pay a fee of Rs 500 if the Aadhaar linking with PAN was completed between 1 April and 30 June 2022. If someone still hasn’t linked their Aadhaar and PAN, they can do now do it till March 31, 2023, with a penalty of Rs 1,000.

    Here is how one can link their PAN with Aadhaar online.

    Linking Via the Income-Tax Department Portal

    Step 1: Go to incometaxindiaefiling.gov.in, the e-filing portal of the I-T department.

    Step 2: Click on the ‘Link Aadhaar’ option under the ‘Quick Links’ section of the webpage.

    Step 3: This will redirect you to a new page where the PAN number, Aadhaar number and other required details like your name need to be entered.

    Linking Via SM

    Step 1: Dial 567678 or 56161 on a mobile device to send an SMS. The format should be UIDPAN (10-digit PAN card number), 12-digit Aadhaar card number, and space.

    Step 2: Following that, an SMS will inform you of the PAN-Aadhaar link status. The Aadhaar and PAN will only be linked if the taxpayer’s date of birth matches both documents.

    An individual shall be liable for all repercussions under the I-T Act when a PAN expires on March 30 according to a circular from the Central Board of Direct Taxes (CBDT), which sets policy for the Income Tax department.

    Read all the Latest Business News here





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