NEWSLETTER 31ST MARCH 2023
Direct Taxes
Last date for linking of PAN-Aadhaar extended
In order to provide some more time to the taxpayers, the date for linking PAN and Aadhaar has been extended to 30th June, 2023, whereby persons can intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions. Notification to this effect is being issued separately.
Under the provisions of the Income-tax Act, 1961(the ‘Act’) every person who has been allotted a PAN as on 1st July, 2017 and is eligible to obtain Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March, 2023, on payment of a prescribed fee. Failure to do so shall attract certain repercussions under the Act w.e.f. 1st April, 2023. The date for intimating Aadhaar to the prescribed authority for the purpose of linking PAN and Aadhaar has now been extended to 30th June, 2023.
From 1st July, 2023, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative and the consequences during the period that PAN remains inoperative will be as follows:
- no refund shall be made against such PANs;
- interest shall not be payable on such refund for the period during which PAN remains inoperative; and
- TDS and TCS shall be deducted /collected at higher rate, as provided in the Act.
The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of fee of Rs.1,000.
Those persons who have been exempted from PAN-Aadhaar linking will not be liable to the consequences mentioned above. This category includes those residing in specified States, a non-resident as per the Act, an individual who is not a citizen of India or individuals of the age of eighty years or more at any time during the previous year.
It is stated that more than 51 crore PANs have already been linked with Aadhaar till date. PAN can be linked with Aadhaar by accessing the following link https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar
Roll out of ‘AIS for Taxpayer’ Mobile App
The Income Tax Department has launched a Mobile app, namely, ‘AIS for Taxpayer’ to facilitate taxpayers to view their information as available in the Annual Information Statement (AIS) / Taxpayer Information Summary (TIS). ‘AIS for Taxpayer’ is a mobile application provided free of cost by the Income Tax Department, and is available on Google Play & App Store. The app is aimed to provide a comprehensive view of the AIS/TIS to the taxpayer which displays the information collected from various sources pertaining to the taxpayer.
Taxpayers can use the mobile app to view their information related to TDS/TCS, interest, dividends, share transactions, tax payments, Income Tax refunds, Other Information (GST Data, Foreign Remittances, etc.) as available in AIS/TIS. The taxpayer also has the option and the facility to provide feedback on the information displayed in the app.
To access this mobile app, the taxpayer needs to register on the app by providing PAN number, authenticate with the OTP sent on mobile number & e-mail registered on the e-filing portal. Subsequent to the authentication, the taxpayer can simply set a 4-digit PIN to access the mobile app.
This is another initiative of the Income Tax Department in the area of providing enhanced taxpayer services facilitating ease of compliance.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 21st March, 2023
(INCOME TAX)
S.O. 1329(E).—In exercise of the powers conferred by sub-section (1) and (2) of section 120 of the Incometax Act, 1961 (43 of 1961) and in partial modification of notification number S.O. 5449(E) dated the 29th December, 2021 published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (ii), the Central Board of Direct Taxes hereby authorises the Principal Chief Commissioners of Income-tax specified in column (2) of the Schedule below, having their Headquarters at the places specified in the corresponding entries in column (3) of the said Schedule, to issue orders in writing for the exercise of powers and performance of functions by the Income-tax authorities specified in the corresponding entries in column (4) of the said Schedule who are subordinate to them in respect of such territorial areas or of such persons or classes of persons or of such incomes of classes of income or of such cases or classes of cases as may be specified in such order.
Provided that no such orders, shall be issued so as to interfere with the discretion of the Commissioner of Income Tax (Appeals) in the exercise of appellate functions.
SCHEDULE
| Sl. No. | Designation | Income-tax Authorities | Income-tax Authorities |
| (1) | (2) | (3) | (4) |
| 1 | Principal Chief Commissioner of Income Tax, Karnataka and Goa | Bengaluru | Commissioner of Income-tax (Appeals), Bengaluru-15 |
| 2 | Principal Chief Commissioner of Income Tax, Tamil Nadu and Puducherry | Chennai | Commissioner of Income-tax (Appeals), Chennai-20 |
| 3 | Principal Chief Commissioner of Income Tax, Rajasthan | Jaipur | Commissioner of Income-tax (Appeals), Jaipur-5 |
| 4 | Principal Chief Commissioner of Income Tax, West Bengal and Sikkim | Kolkata | Commissioner of Income-tax (Appeals), Kolkata-26 |
| 5 | Principal Chief Commissioner of Income Tax, West Bengal and Sikkim | Kolkata | Commissioner of Income-tax (Appeals), Kolkata-27 |
| 6 | Principal Chief Commissioner of Income Tax, Uttar Pradesh (West) | Noida | Commissioner of Income-tax (Appeals), Noida-3 |
| 7 | Principal Chief Commissioner of Income Tax, Madhya Pradesh and Chhattisgarh | Raipur | Commissioner of Income-tax (Appeals), Raipur-3 |
This Notification shall come into force from the 1st day of April, 2023.
FINANCE BILL-2023
The Lok Sabha has passed the Finance Bill 2023 with over 60 amendments to the bill initially introduced in the Lok Sabha on February 01, 2023. These amendments include changes related to IFSC, capital gains, TDS/TCS, Securities Transaction Tax (STT), GST Appellate Tribunal, etc. On March 27, 2023, in Rajya Sabha, the Finance Minister, Smt. Nirmala Sitharaman proposed an amendment to the Finance Bill to rectify the figures related to the Security Transaction Tax (STT) rate for the “sale of option in securities.”
In-Direct Taxes
Advisory for the taxpayer wishing to register as “One Person Company” In GST
As per provision of section 2(62) of The Companies Act, 2013 “One Person Company” is defined as a company which has only one person as member.
Some issues have been raised by the persons registering as ‘One Person Company’ while they take GST registration. Upon analysis, it has been noticed that the option of choosing One Person Company is not there in form notified by CGST/SGST Acts and hence not available on the GSTN portal also.
As a work around, it is advised that in the ‘Part B’ of GST Registration Form ‘REG-01’, applicant may select (Constitution of Business under ‘Business Details’ tab using dropdown list) option “Others”, if the taxpayer wants to register for GST as “One Person Company”. After selecting option as “Others”, the applicant shall also mention “One Person Company” in the text field and follow the steps for a normal registration application to complete the process.
In case of any further issues, it is advised to raise ticket at self-help portal.
HSN Code Reporting in e-Invoice on IRPs Portal
- We would like to bring to your attention notification no. 78/2020 – Central Tax dated 15th October 2020. As per the above-said notification, it is now mandatory for taxpayers to report a minimum of six-digit valid HSN code for their outward supplies having AATO of more than 5 crores in any previous financial year.
- We would like to inform you that this requirement has already been implemented in the GST system, and we are now in the process of implementing the same at IRPs portal in collaboration with our IRP partners including NIC. It is further suggested that in case wherever valid six digit HSN code is not available, a corresponding valid eight digit HSN code be reported instead of artificially creating six digit HSN code
- We understand that this requirement may require changes to your systems as well. We would like to assure you that we intend to provide sufficient time for taxpayers and IRP partners to make the necessary changes to comply with this requirement.
- We will communicate the exact date of implementation to you
- shortly.
PAN-Aadhaar linking deadline extended till June 30, 2023 : CBDT
The Central Board of Direct Taxes (CBDT) has extended the last date to link Permanent Account Number (PAN) with Aadhaar to June 30, 2023. In a press release released on March 28, 2023, CBDT said, “In order to provide some more time to the taxpayers, the date for linking PAN and Aadhaar has been extended to 30th June 2023, whereby persons can intimate their Aadhaar to the prescribed authority for Aadhaar-PAN linking without facing repercussions.”
CBDT has extended the deadline to link PAN with Aadhaar for the fifth time. “Notification to this effect is being issued separately,” it further added.;
Who has to link PAN with Aadhaar?
“Under the provisions of the Income-tax Act, 1961(the ‘Act’) every person who has been allotted a PAN as of 1st July 2017 and is eligible to obtain an Aadhaar Number, is required to intimate his Aadhaar to the prescribed authority on or before 31st March 2023,on payment of a prescribed fee,” said CBDT.
What happens if you fail to link your Aadhaar with your PAN by June 30,2023?
“From 1st July 2023, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative,” CBDT said. The consequences during the period that PAN remains inoperative will be as follows:
- No refund will be made against such PANs
- Interest will not be payable on such refund for the period during which PAN remains inoperative.
- TDS and TCS shall be deducted /collected at the higher rate, as provided in the Income-tax Act, 1961.
Pay Rs 1,000 fine to link PAN with Aadhaar
If PAN becomes inoperative, individuals need to pay a nominal penalty of Rs 1,000 to link it with Aadhaar. “The PAN can be made operative again in 30 days, upon intimation of Aadhaar to the prescribed Authority after payment of fee of Rs 1,000,” said CBDT.
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