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 Finance Ministry has rejected the proposal of raising
the income tax exemption limit to Rs. 3 lakh as recommended by the
Parliamentary Standing Committee, headed by former FM Shri Yashwant Sinha. The
recommendation was made as part of the Committee's report on the Direct Taxes
Code (DTC).
The Ministry has stated that adjusting the slabs
will cause tax revenue loss to the tune of Rs. 60,000 crore a year. However, ministry
has agreed to the recommendation on reducing the age limit for sr. citizens from
65 years to 60 years for the purpose of tax exemption.
At
present there is no tax on income upto Rs. 2 lakh in a financial year. For income
of Rs.2 to 5 lakh, tax is at the rate of 10%, on Rs. 5-10 lakh 20% and income
beyond Rs. 10 lakh 30%. Whereas the Parliamentary Committee had proposed no tax
on income upto Rs. 3 lakh per annum, at the rate of 10% for Rs. 3-10 lakh; 20%
for Rs. 10-20 lakh; and 30% on annual income beyond Rs. 20 lakh.
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