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
Bill seeks to initiate some structural changes to NPS. NPS is known as an
investment vehicle that locks in subscribers’ money till they turn 60. At 60, a
subscriber can withdraw about 60% of the retirement corpus and “annuitize” the
remaining 40%—buy pension product that gives periodic income.
In order to offer subscribers some liquidity, the proposed
law allows for withdrawals with limits on the amount and number of withdrawals.
The amendment to the Bill states: “Withdrawals not exceeding 25% of the
contribution made by subscriber will be permitted from the individual pension
account subject to the conditions, such as purpose, frequency and limits, as
may be specified by regulations.
The other big change to the product is the introduction of a
guaranteed return option. According to the amendments to the Bill, a subscriber
seeking minimum assured returns will be allowed to opt for investing his or her
funds in schemes providing minimum assured returns.
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