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Tag: Finance bill 2021

  • Finance Bill, 2021: Cabinet provides ex-post facto nod to amendments

    The Union Cabinet on Tuesday gave ex-post facto approval to the official amendments to the Finance Bill, 2021, which have been aimed toward clarifying and rationalising tax proposals for 2021-22.
    The amendments have been important to make clear and rationalise the proposals additional and deal with stakeholders’ considerations arising out of the proposals enumerated within the Finance Bill, the federal government stated in an announcement. The regulation was enacted on March 28, 2021 after receiving the President’s nod.
    “The amendments … are tax proposals which shall generate timely revenue for the Government and streamline existing provisions by addressing grievances of the taxpayers,” it stated.

    The Finance Bill, which provides impact to tax proposals for FY22, was handed in Parliament in March with 127 amendments. Among different adjustments, it has offered for a 10-year earnings tax exemption to the National Bank for Financing Infrastructure and Development. Private growth finance establishments have been offered a five-year tax exemption, which could be prolonged by one other 5 years.
    The modification additionally clarified that the equalization levy wouldn’t be relevant on consideration of the sale of products or companies that are owned by individuals resident in India or by a everlasting institution of a non-resident in India.

  • PAN-Aadhaar linking: Here’s find out how to hyperlink your PAN with Aadhar on-line

    The deadline for linking Permanent Account Number (PAN) to Aadhaar is simply a few days away and if anybody fails to do it by Wednesday, March 31, 2021, then their PAN will develop into invalid. Not solely this they could even be liable to pay a penalty of as much as Rs 1,000.
    The authorities handed the Finance Bill 2021 within the Lok Sabha final week the place it inserted a brand new part 234H beneath which an individual shall be liable to pay a late payment of as much as Rs 1,000 in case of non-linking of their PAN with Aadhaar.
    “234H. Without prejudice to the provisions of this Act, where a person is required to intimate his Aadhaar number under sub-section (2) of section 139AA and such person fails to do so on or before such date, as may be prescribed, he shall be liable to such fee, as may be prescribed, not exceeding one thousand rupees, at the time of making intimation under sub-section (2) of section 139AA after the said date,” the invoice stated.

    Although the federal government has not clearly specified whether or not it’s going to cost a penalty from those that fail to hyperlink their PAN with Aadhar by March 31 and neither has it specified the precise penalty quantity for a similar, it has handed the invoice within the parliament which suggests it has the authority to implement it after notification within the Government Gazette.
    In the previous, the federal government has supplied a number of extensions, permitting individuals to hyperlink their PAN with Aadhaar.
    Here’s how one can hyperlink your PAN along with your Aadhaar:
    Open your browser and head to Income Tax Department’s web site – https://www.incometaxindiaefiling.gov.in/home
    Click on “Link Aadhaar” beneath the Quick Links part situated on the left facet of the web page.
    On the subsequent web page, it’s important to enter your PAN, Aadhaar Number, Name as per Aadhaar
    Click the verify field if you happen to solely have the yr of delivery in Aadhaar card after which click on the verify field for agreeing to validate your Aadhaar particulars with UIDAI
    Enter the Captcha code proven within the picture (Visually challenged customers can request an OTP as a substitute of the captcha picture. They shall be requested to enter their registered cell quantity the place the OTP shall be despatched)
    Click on the “Link Aadhaar” tab beneath
     

  • Get able to pay late price in the event you don’t hyperlink Aadhaar and PAN by 31 March

    NEW DELHI: The final date for linking of Aadhaar and PAN (everlasting account quantity) is 31 March. In case you don’t do it, your PAN will develop into invalid.

    In the Finance Bill, 2021, handed by the Lok Sabha on Tuesday, the federal government has launched an modification below which an individual will likely be liable to pay a late price of as much as Rs1,000 in case of non-linking of PAN with Aadhaar.

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    “The Finance Bill (Lok Sabha) has inserted a brand new Section 234H to levy a price for default in intimating the Aadhaar quantity. If an individual is required to intimate his Aadhaar below Section 139AA(2) and such individual fails to take action, he shall be liable to pay a price, as could also be prescribed, not exceeding ₹1,000 on the time of constructing such intimation,” stated Tarun Kumar a Delhi based mostly chartered accountant.

    “Therefore, if an individual fails to hyperlink PAN and Aadhaar by 31 March, he shall be liable to pay a price of ₹1,000. This price shall be along with the opposite penalties the individual has to face if PAN turns into inoperative as a consequence of non-maintenance of Aadhaar,” he added.

    “The government has in the past given several extensions to allow people to link Aadhaar and PAN, it appears now they want to penalise those who don’t do it within due date by levying a late fee,” stated Shailesh Kumar, associate, Nangia & Co. LLP, a tax agency.

    As per Section 139AA, it’s obligatory for each individual to cite the Aadhaar quantity of their earnings tax return and the applying for the allotment of PAN, supplied they’re eligible for Aadhaar.

    Apart from this each one who has been allotted PAN as on 1 July, 2017 and who’s eligible to acquire Aadhaar quantity is required to hyperlink his PAN to Aadhar. In case an individual fails to take action, his or her PAN card will develop into inoperative after 31 March, 2021.

    As per rule 114AAA, in case the place an individual is required to furnish or intimate his PAN and the PAN is inoperative, will probably be deemed that she or he has not furnished PAN. Under varied provisions of the Income Tax Act if an individual doesn’t furnish PAN or provides an inoperative PAN she or he might should a pay a better TDS (tax deducted at supply) or TCS (tax collected at supply), and should not be capable of file earnings tax return and should face the implications of not submitting the tax return.

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  • Government raises provident fund threshold restrict to Rs 5 lakh for incomes tax-free curiosity

    The authorities on Tuesday raised the deposit threshold restrict to Rs 5 lakh every year in provident fund for which curiosity would proceed to be tax exempt. This can be relevant to these circumstances the place no contribution is made employers to the retirement fund.
    In her Budget offered to Parliament on February 1, Finance Minister Nirmala Sitharaman had supplied that curiosity on worker contributions to provident fund over Rs 2.5 lakh every year can be taxed from April 1, 2021.
    Replying to the talk on the Finance Bill 2021 within the Lok Sabha, Sitharaman made the announcement relating to elevating the restrict to Rs 5 lakh in circumstances the place employers don’t make a contribution to the provident fund.
    The Finance Bill, which supplies impact to tax proposals for 2021-22, was authorised by voice vote. The invoice was handed after acceptance of 127 amendments to the proposed laws. The minister additionally burdened that tax on curiosity on provident fund contribution impacts only one per cent of the contributors, and the remaining should not impacted as their contribution is lower than Rs 2.5 lakh every year.

    Referring to the problems raised by numerous members on larger taxes on motor gas, Sitharaman stated she would love to debate the problem of bringing petrol and diesel beneath GST within the subsequent GST Council assembly. She additionally sought to remind members that it was not simply the Centre which taxes motor gas and states too impose levies.
    The Finance Minister additionally stated, rationalisation of customs obligation construction can be undertaken to assist home companies, particularly the MSME section. On taxes, she emphasised on the necessity for widening the tax base. With regards to the equalisation levy, she stated that is meant to offer a stage taking part in discipline to home companies which pay taxes in India.