Corporate and Professional updates on 3rd September 2019

Direct Tax Updates:

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  • Income Tax Department will automatically issue PAN to a taxpayer using Aadhaar number for filing returns as part of a new arrangement to link the two databases.
  • According to a notification issued by the CBDT on August 30, a person who furnishes Aadhaar, as they do not have PAN, “shall be deemed” to have applied for allotment of PAN and they will not be required to apply or submit any more documents. The rule has come into effect from September 1, it said.
  • The notification said the tax department will “obtain demographic information of an individual from the Unique Identification Authority of India (UIDAI)” for allotment of Permanent Account Number (PAN), a ten-digit alphanumeric identifier issued by it.
  • CBDT chairman P C Mody had told PTI in an interview in July that the department would “suo motu” allot a fresh PAN to a person who files I-T Returns (ITR) with only Aadhaar as part of a new arrangement to link the two databases.
  • In cases where Aadhaar is being quoted and PAN is not there, we could possibly think on the terms of allotting a PAN to the person (who is filing income tax return).”
  • The law provides that the assessing officer can suo motu allot PAN. So, if Aadhaar is being quoted without PAN, I give him the PAN. It becomes linked,” the CBDT chairman had said.
  • Mody was asked if the Income Tax Department-issued PAN will be dead after Finance Minister Nirmala Sitharaman in her Budget speech on July 5 announced that PAN and Aadhaar are being made interchangeable as the government will allow those who do not have PAN to file I-T returns by simply quoting their Aadhaar number and use it wherever they are required to quote PAN.
  • Linking of the two databases is now compulsory and backed by law, the CBDT chief had said. While Aadhaar is issued by UIDAI to a resident, PAN is a 10-digit alphanumeric number allotted by the tax department to a person, firm or entity.
  • Aadhaar holds all vital information of an individual such as name, date of birth, gender, photo and address, and also biometrics. The same set of information is required to get a new PAN.
  • As per data, over 120 crore Aadhaar numbers have been issued in the country and about 41 crore PAN numbers have been generated. Out of these, more than 22 crore PANs are linked with Aadhaar.
  • Section 139 AA (2) of the I-T Act stipulates that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate their Aadhaar number to tax authorities.
  • After the Supreme Court upheld the section 139AA, the government in March this year declared that the deadline for linking PAN-Aadhaar was available till September 30.
  • The apex court, in September last year, had declared the Centre’s flagship Aadhaar scheme was constitutionally valid and held that the biometric ID would remain mandatory for filing of I-T returns and allotment of PAN.
  • The latest notification said the tax department will be “responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing or intimation or quoting or authentication of Aadhaar number or obtaining of demographic information of an individual from the UIDAI, for allotment of permanent account number and issue thereof”.

Other Updates:

  • Foreign borrowings double to $4.98b in July: RBI
  • China’s stimulus measures set to boost cooper price
  • Public sector banks’ heads told to reform boards
  • No tax demand from startups sans appellate tribunal nod
  • Growth of eight core industries slows down to 2.1%
  • Maruti cuts production for 7th straight month in August
  • PNB board to consider Rs 18,000 cr capital infusion
  • Economists predict deeper interest-rate cuts, slow economic growth
  • ISO forecasts global sugar deficit of nearly 5 mn tonnes in 2019-20
  • NHAI to offer roads as collateral, in talks with SBI to fund projects
  • Apple gets to bite into Indian retail as policy hurdles are removed
  • ISO forecasts global sugar deficit of nearly 5 mn tonnes in 2019-20
  • Manufacturing growth slows to 15-month low in August: PMI
  • Jet Airways fails to attract new bidders
  • India Inc’s overseas borrowings more than double to $4.98 billion in July
  • SAIL to provide land for pellet plant joint venture with KIOCL
  • JK Tyre promoter take control of pledged shares after repaying Rs 200 crore loan
  • FDI cap in digital media may hit valuations, fundraising
  • Fintech panel for legislative changes for issuance of FDs in demat form
  • Sitharaman-led panel weighs ordinance to ban e-cigarette sales
  • Modern Foods acquires 75% stake in Supreme Baker
  • ‘Economic slump an opportunity for expansion, acquisitions, hiring talent’
  • DBS revises India’s real GDP growth to 6.2 per cent for FY20
  • Panel blames lack of level playing field, discriminatory regulation for high level of cash in system
  • Tata Steel announces closure of UK factory, nearly 400 jobs on the line
  • Government restores duty-free replenishment facility for jewellery exporters
  • Coal India output drops 10.3 per cent in August
  • Tea profit likely to contract 140-150 bps: Crisil
  • New FDI norms in single brand retail to increase exports
  • SBI Cards says IPO process initiated, decision on timing to hit mkt soon.

Key Due Dates:

  • The Due Date of TDS for the Month of August is 7th September 2019.
  • The Due Date of GSTR-1 for the Monthly Fillers for the Month Of August is 10th September 2019.
  • The Due Date of GSTR-3B for the Month of August 2019 is 20th September 2019.

Disclaimer:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Before making any decision do consult your professional /tax advisor for their misrepresentation or interpretation of act or rules author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. The author is a Chartered Accountant and the Chief Gardener & Founder Director of Rajput Jain & Associate, a leading Tax & Investment planning Advisor Service provider. His Blog can be found at http://carajput.com for any query you can write toinfo@carajput.com. Hope the information will assist you in your professional endeavors. For query or help contact: info@carajput.com  or call at 09811322785/4- 9555555480.

One thought on “Corporate and Professional updates on 3rd September 2019

  1. Thanks for sharing us a great information that is actually helpful.

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