As it is well known that the income tax department has allowed Aadhaar card holders to use the biometric id number in lieu of the Permanent Account Number (PAN). But as per new provision of Income Tax, fine of Rs. 10,000 may be levied in case of wrong Aadhar Number. As per the latest amendments in the Finance Bill 2019, not only allowed people to use Aadhaar in lieu of PAN but also introduced a penalty for giving a false Aadhaar number. However, the new penalty rules are applicable only in cases where you are using Aadhaar in lieu of PAN and where quoting PAN is mandatory according to the income tax department rules. It is well known that although Aadhaar is issued by the Unique Identity Authority of India, yet the fine is not imposed by UIDAI but by the income tax department. Under Section 272B of the Income Tax Act, 1961, the department can impose a penalty in case of default in complying with provisions relating to PAN, i.e., failure to obtain, quote, or authenticate PAN. ...
The
Cabinet is likely to consider the Direct Taxes Code (DTC) Bill on Thursday,
which seeks to overhaul the over 50-year old income-tax law, with minor rejigs
in the draft, including in the income-tax slabs.
"The
DTC Bill is on the agenda of the Cabinet meeting tomorrow," a source said.
The
exemption limit at Rs 2 lakh for individual tax payers is unlikely to be
touched, but a new slab of 35 percent may be introduced for the super-rich.
Besides,
Minimum Alternate Tax (MAT) may be levied on book profit and not on gross
assets, sources said. Further, the Securities Transaction Tax (STT) is likely
to be retained, as against the recommendation of the Standing Committee on
Finance that the levy be abolished.
Among
other things, the Standing Committee, headed by senior BJP leader Yashwant
Sinha, had suggested raising the income-tax exemption limit to Rs 3 lakh from
Rs 2 lakh proposed in the DTC Bill, 2010.
The
DTC bill, which aims to rationalize tax rates to bring more people and
companies under the tax net, was introduced in Parliament in 2010.
Finance
Minister P Chidambaram had earlier said he intends to bring the DTC Bill in the
Monsoon session of Parliament, following submission of the Standing Committee's
recommendations. The ongoing Monsoon session is scheduled to end on August 30.
The
first draft prepared by Chidambaram in 2009 had proposed income-tax slabs of Rs
1.6-10 lakh, Rs 10-25 lakh and Rs 25 lakh and above. Besides, corporate tax was
proposed at 25 percent.
This
was followed by the draft DTC Bill prepared by then-Finance Minister Pranab
Mukherjee in 2010, which proposed the slabs at Rs 2-5 lakh, Rs 5-10 lakh and Rs
10 lakh and above and corporate tax at 30 percent.
The
Standing Committee suggested slabs of Rs 3-10 lakh, Rs 10-20 lakh and Rs 20
lakh and above. On corporate tax, it recommended the rate be retained at 30
percent.
Source: Business Standard
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