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. ...
In a time
when high inflation is blowing holes in pockets of consumers, if a relaxation
is granted on tax deduction, consumers will definitely get a reason to
celebrate. Well, Ministry of Law and Justice has
approved the proposal to raise annual income tax exemption limit from 2 lakh to
3 lakh, reports DB correspondent.
The Direct Tax Code (DTC) draft will now be sent to Cabinet for
approval. Thereafter, the approved draft will be introduced in
Parliament. According to an official of Ministry of Finance, Parliamentary
Committee has nearly agreed to the tax exemption limit under the latest draft
of future DTC bill.
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The
proposal was first drafted by the standing committee led by former Finance
Minister Yashwant Sinha. The committee had raised the cap of annual tax
exemption from Rs. 2 lakh to Rs. 3 lakh. Moreover, the committee has
recommended maintaining the tax percentage at 10% for income group earning
annual pay up to Rs. 10 lakh.
Current
tax rates
Currently,
income tax rate for income group of Rs. 2–5 lakh is 10%. Professionals earning
annual income of Rs. 5–10 lakh are required to pay an income tax of 20%.
Finally, the income group of Rs. 10 lakh above must 30% of their income as tax
to the government.
'Super
Rich' category
Yashwant
Sinha has said that a new ‘Super Rich Category’ shall be introduced amongst the
classes of taxable income groups. We are told that suggestions from various
ministries have been incorporated in the draft that is due to be introduced in
the Parliament. The Super Rich income group will have to pay more than 30% of
their income as tax to the government.
Way
through the Parliament
The DTC draft is expected to be introduced to the Winter
Parliamentary Session commencing on 5 December. If the government is
indeed keen to consider the DTC bill, it has to be introduced while the winter
session. The bill shall not be delayed post the coming session, because in the
following session Budget shall be presented to secure ‘vote on account’.
Finance
Ministries
Three drafts of the DTC bill have
already been prepared so far. The first draft was charted by P Chidambaram back
in 2009, when he held the position of Finance Minister. The Ministry was
however dissolved after that as the Ministry was taken over by Pranab
Mukherjee. Mukherjee charted a fresh draft; however, neither of the two drafts
could be taken forward.
Chidambaram
is now a Finance Minister again and Pranab Mukherjee is now President of India.
The Finance Minister has prepared a new draft on the proposal. It is now to be
seen how far the proposal proceeds as there is little time left in general
elections 2014.
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Source : Daily Bhaskar
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