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 government plans to introduce a bill for a
direct taxes code (DTC) during the forthcoming monsoon session of Parliament,
Finance Minister P Chidambaram has said. The code, which will replace the
existing Income Tax Act 1961, aims to rationalise tax rates to bring more
people and companies under the tax net.
"It (modified draft of DTC) will be ready
in a day or two. Then we will take it to the Law Ministry and do the drafting.
Once the drafting is done, we will take the note to the Cabinet and the
official amendments to the Direct Taxes Act, 2010, I hope to place it in the
Monsoon session," he told PTI.
The
month-long monsoon session of Parliament is expected to start in late July.
The
Minister said there are three versions to the DTC Bill -- the DTC 2009 version,
DTC 2010 bill and the Standing Committee report-- and he would endeavour to
reconcile them.
"We have to reconcile all three as far as
possible and I have an obligation to adhere, as far as possible, to the
recommendations of the Standing Committee," Chidambaram said.
The DTC Bill was introduced in Parliament in 2010
and was referred to the Standing Committee
on Finance headed by senior BJP leader Yashwant Sinha.
Among other things, the Committee had suggested raising the income tax exemption limit to Rs 3 lakh as against Rs 2 lakh proposed in the DTC Bill, 2010.
Among other things, the Committee had suggested raising the income tax exemption limit to Rs 3 lakh as against Rs 2 lakh proposed in the DTC Bill, 2010.
The Income Tax Act was enacted in 1961. The first draft prepared by Chidambaram in 2009 had proposed a income tax slab from Rs 1.6-10 lakh, Rs 10-25 lakh and Rs 25 lakh and above. Besides, the corporate tax was proposed at 25 per cent.
This was followed by the draft DTC Bill prepared
by the 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. Here the corporate tax was proposed at 30 per cent.
The Standing Committee in its recommendation
suggested the slabs in the brackets of Rs 3-10 lakh, Rs 10-20 lakh and Rs 20
lakh and above. On corporate tax, it recommended that the rate be retained at
30 per cent. The current rates for income tax would continue at 10, 20
and 30 per cent respectively.
Source : http://economictimes.indiatimes.com
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