Aadhaar linking: Income tax department clarifies on making PAN in- operational

• Apr 07, 2022
  The deadline for linking your Permanent Account Number (PAN) with Aadhaar has already passed. However, this does not mean that your PAN may become inoperative. As per a circular issued by CBDT, PAN, not linked to Aadhaar, would become "inoperative" after March 31, 2023. Those taxpayers who link their PAN with biometric Aadhaar by June 30, 2022, would be required to pay late fees of ?500. Beyond that, the penalty would rise to ?1,000. In order to mitigate the inconvenience to taxpayers, as per notification dated March 29, 2022, a window of opportunity has been provided to taxpayers up to March 31, 2023, to intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions, the CBDT said, adding such intimation would have to be accompanied by late fees.
  

Income Tax

PAN Aadhaar linking: 5 consequences if PAN becomes inoperative

• Apr 08, 2022
  
  

• The deadline to link your PAN with Aadhaar has been extended from March 31, 2022 to March 31, 2023. However, starting April 1, 2022, linking your PAN and Aadhaar will cost you money. The Central Board of Direct Taxes (CBDT) notified this via a notification dated March 29, 2022, as well as a press release on March 30, 2022. The Finance Act of 2021 added a new section 234H to the Act to complete the PAN-Aadhaar connecting procedure for detecting fake PANs. This section states that if a person who is required to intimate his Aadhaar under subsection (2) of section 139 AA fails to do so on or before a notified date, he will be liable to pay a fee of not more than Rs 1,000, as may be prescribed, at the time of making intimation under subsection (2) of section 139AA after the notified date.

Income Tax

Centre plans sharper income tax scrutiny on rich farmers

• Apr 08, 2022

• Dodging tax by passing off earnings as agricultural income is set to get tougher as robust checks are being introduced, the government has told Parliament’s Public Accounts Committee, which pointed to several lapses in granting blanket exemptions.Super-rich farmers will face stricter scrutiny by tax authorities, who will comb through details of agricultural income — tax-free under the law — in jurisdictions where farm income exceeds a threshold of ?10 lakh a year, the finance ministry said in a response to questions to the parliamentary committee. In about 22.5% of cases, authorities approved tax-free claims without proper assessment and verification of documents, allowing scope for evasion of taxes, the committee said.The panel released its 49th report, “Assessment related to Agricultural Income” on Tuesday. It is based on a report by the Auditor and Comptroller General of India. One such case involved tax exemption of farm income of ?1.09 crore as proceeds from the sale of farmland in Chhattisgarh.

Income Tax

India's black money law to face a Swiss test

• Apr 11, 2022
  
  

• India’s Black Money law, the statute that arms the tax office to go after citizens with secret foreign bank accounts and assets, will be tested before the Swiss courts this year. About half a dozen appeals are coming up for hearing to stop Swiss authorities from sharing information with India on the grounds that not only can the harsh law be applied `retroactively’, it can also be used to impose stricter `criminal’ sanctions than those that would have been possible at the time the offences were committed ---- features which are incompatible with the Swiss legal system and values, lawyers familiar with the subject told ET.
  As evidence, the appellants are pointing out the reference to Black Money Act in the ‘information request’ from the Indian Income Tax (I-T) department to Switzerland along with notices and summons received by them from the Enforcement Directorate (ED) which can prosecute persons involved in money laundering. Data received by the I-T department is routinely shared with ED.

Income Tax

FAQ on taxation of crypto, virtual digital assets in works

• Apr 11, 2022
  
  

• The government is working on an FAQ on taxation of cryptocurrencies, which will give a nuanced clarification on the applicability of income tax and GST on virtual digital assets, an official said. The set of Frequently Asked Questions (FAQ), which is being drafted by the Department of Economic Affairs (DEA), RBI and Revenue Department, would also be vetted by the law ministry, the official added."FAQ on taxation of cryptocurrency and virtual digital assets is in works. Although FAQs are for information purposes and do not have legal sanctity, law ministry's opinion is being sought to ensure that there is no loophole," the official told PTI.

Income Tax

• Apr 13, 2022

• The income tax department has announced that e-filing of ITR 1 and ITR 4 for AY 2022-23 is enabled. According to an announcement on the Income Tax Department’s website, “E-filing of ITR 1 and ITR 4 for AY 2022-23 enabled. Taxpayers can download ITR Offline Utility through the “Downloads” Menu option, fill and file the ITR through the same. Online filing of these ITRs shall be enabled shortly.” Last week, the Central Board of Direct Taxes (CBDT) notified the income tax return (ITR) forms for FY 2021-22. A notification dated March 30, 2022 was sent out to the forms. The income tax return forms have remained mostly similar for the past two years.

Income Tax

Tax Talk: Income Tax Return forms tweaked for additional details

• Apr 13, 2022
  
  

• The CBDT recently notified ITR forms for Assessment Year (AY) 2022-23, corresponding to the financial year (FY) 2021-22. While applicability of the ITR forms to different categories of taxpayers does not change, certain changes merit attention. Schedule FA requires reporting of foreign assets by a resident taxpayer. Under the Income Tax Act, the period for which income is taxable is the “previous year”, which is the FY ending March 31. Schedule FA required disclosure of assets held during the “accounting period”, which is the period adopted for closing of accounts and tax filings by foreign jurisdictions in which assets are located.
  To eliminate the confusion, Schedule FA of new ITR forms requires reporting of foreign assets held at any time during the calendar year ending on December 31, 2021. If for instance, an asset is purchased for the first time in January 2022, it does not have to be reported in Schedule FA of ITR for FY 2021-22 but in ITR for FY 2022-23.

Income Tax

Higher tax on capital gains, other passive incomes on cards as mostly rich people get the benefits

• Apr 14, 2022

• The 2022-2023 Union Budget lays the roadmap for India@100. During her speech introducing the Union Budget, Finance Minister Nirmala Sitharaman announced initiatives for, amongst other sectors, the ‘7 engines’ of the economy. Although the government has predicted higher revenue recovery in FY 2022-2023 (Rs 19.25 lakh crore) to support these initiatives, given that over Rs 12 lakh crore in revenues raised by the government are being disputed, an increase in tax rates, or the imposition of new taxes, may be required to boost actual recoveries.

Income Tax