Alert! PAN-Aadhaar linking due date 30 June, 2020

The linking of Aadhaar with PAN is a mandate for the processing of Income Tax Returns (ITR). The extended deadline for linking the two was 31st March, 2020 earlier, which has been further extended till 30th June, 2020, in the wake of nationwide lock-down due to coronavirus.

Therefore, PAN card holders may end up paying a hefty penalty of Rs 10,000 as per Sec-272B of the Income Tax Act, if they fail to link it with their Aadhaar cards before June 30.

Mandatory Quoting of Aadhaar in the return of income

Section 139AA of Income Tax Act, 1961 mandates that:

a. Every person who is “eligible to obtain an Aadhaar”, must quote the Aadhaar

number in the PAN application form as well as the return of income with effect

from 1 July 2017.

b. Those who did not possess the Aadhaar number could quote their Aadhaar enrollment ID in the return of income.

c. Every person who had been allotted PAN as on 1 July 2017, and has received the Aadhaar number, must intimate the number to the tax authorities by linking PAN and Aadhaar.

d. Failure to intimate Aadhaar number would lead to the PAN being inoperative.

The income tax department has notified that the PAN if not linked to Aadhaar within the specified due date (30th June, 2020 till now) will become inoperative and it will be deemed that the PAN was not furnished or intimated wherever required and all the consequences of non-furnishing of PAN will be applicable to the individual. However, the transactions done in the past will still remain valid.

The same will be operative only after the date of linking Aadhaar with PAN.

(Notification N0.11/2020)

Person eligible to obtain an Aadhaar

For mandatorily quoting Aadhaar number in the return of income, Aadhaar needs to be obtained by an individual who qualifies the definition of resident as per Aadhaar Act, 2016 and not as per Income Tax Act.

Means, if the person or taxpayer qualifies as a resident under the provisions of Income tax act but as a non- resident according to Aadhaar act, then such person would be given the benefit of non-quoting of Aadhaar number in their return of income.

As per Aadhaar Act, “resident” means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two (182) days or more in the twelve months immediately preceding the date of application for enrollment.

How to link Aadhaar Card with PAN Card

1. One can log on to the official website of the Income tax department (incometaxindiaefiling.gov.in). To link the two, click on 'Link Aadhaar' option given on the website and fill all the necessary information required such as PAN number, Aadhaar number etc.

2. One can link the same through a simple SMS as well. Just send SMS as

UIDPAN<SPACE><12 digit Aadhaar number><SPACE><10 digit PAN number> on 567678 or 56161. There is no SMS charge being levied by NSDL or UTI but may be

charged by mobile operator company as per your mobile plan.

40th Meeting of the GST Council, New Delhi

Reduction in Late fee for past Returns

Late fee for non-furnishing FORM GSTR-3B for the tax period from July, 2017 to January, 2020 has been reduced / waived as under:

• 'NIL' in case person has no Tax Liability.

• Maximum of 'Rs 500' per return in case person has any Tax Liability.

This reduced rate of late fee would also be applicable for all the GSTR-3B returns furnished between 01/July/2020 to 30/September/2020.

Relief for small taxpayers for late filing of Returns for February, March & April 2020 Tax periods

For small taxpayers (having aggregate turnover up to Rs 5 crore), for the supplies effected in the month of February, March and April, 2020, the rate of interest for late furnishing of return for the said months beyond specified dates (staggered up to 6th July, 2020) is reduced from 18% p.a. to 9% p.a. till 30.09.2020.

In other words, for these months, small taxpayers will not be charged any interest till the notified dates for relief (staggered up to 6th July, 2020) and thereafter 9% p.a. interest will be charged till 30.09.2020.

Relief of late fee & interest to small taxpayers for May, June & July 2020 Tax periods

In wake of COVID-19 pandemic, for small taxpayers (having aggregate turnover up to Rs 5 crore), further relief is provided by waiver of late fees and interest if the returns in FORM GSTR-3B for the supplies effected in the months of May, June and July, 2020 are furnished by September, 2020 (staggered dates to be notified).

One time extension in period for persons seeking revocation of cancellation of GST registration

To facilitate taxpayers who could not get their cancelled GST registrations restored in time, an opportunity is being provided for filing of application for revocation of cancellation of registration up to 30.09.2020, in all cases where registration have been cancelled till 12.06.2020.

Clarification in respect of levy of GST on Director's Remuneration