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1. Income tax department makes it mandatory to link your PAN with Aadhaar by 30th June 2021. If not linked, the PAN will become invalid. This will attract a higher TDS rate and may impact your financial transaction. Link your PAN with Aadhaar.

2. Apart from the above, by virtue of Section 139AA(2) of the Act linking of Aadhar with PAN within the prescribed timelines is mandatory. In case of non-linking the existing PAN issued shall be considered as inoperative and TDS shall be deducted at the higher rate as applicable in case of a person who does not have PAN i.e. @ 20%.

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3. The Finance Minister on 1 February 2021 has introduced a new Section 206AB vide Finance Act 2021. This Section is applicable for FY 2021-22 w.e.f. 1 July 2021. This amendment has been introduced to ensure filing of return of income by those persons who are required to file the return of income but are willfully not filing return of income.

What is the date of Effective Voluntary Cancellation of Registration under the IT ACT? 

4. Sebi came out with fresh guidelines on reporting formats for mutual funds. The formats for the reports to be submitted by asset management companies (AMCs) to trustees, by AMCs to Sebi and by trustees to the regulator have been revised on the basis of consultation from the industry.

5. Mandatory Registrations for NGOs after 01.04.2021 – Form CSR-1, Section 80G and Section 12AB of Income Tax Act. As per the notification issued by the Ministry of Corporate Affairs dated 22nd January 2021, it is mandatory for all NGO’s which wants to raise CSR Funding to enrol with MCA w.e.f 01/04/2021 to get CSR funding. And Filing of Form CSR-1 has been started on the MCA portal and a huge number of NGOs has already enrolled with MCA.

I-T dept launches online facility to tip it off on illegal Foreign Assets

The Income Tax Department has launched a new online facility that allows individuals to provide tips on undisclosed foreign assets, Benami properties, or any form of tax evasion by a person or entity. The link “submit tax evasion petition or Benami property holding” was enabled on the Department’s e-filing site, https://www.incometaxindiaefiling.gov.in, on Monday.

The facility shall allow the filing of complaints by persons who are existing PAN (permanent account number) or Aadhar cardholders, as well as by persons who do not have PAN or Aadhaar. Following an OTP-based authentication (mobile and/or e-mail) procedure, the complainant may file complaints about violations of the Income Tax Act, 1961, Black Money (Undisclosed Foreign Assets and Income) Imposing the Tax Act, 1961 and the Benami Transactions Prevention Act in three different forms intended for this reason.

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Once a complaint is lodged, the department will allocate a specific number to each complaint and the complainant will be able to display the status of the complaint on this weblink. This e-portal is yet another move of the Department to improve the ease of engagement with taxman while improving its contribution to e-governance and promoting and encouraging participation of citizens as stakeholders in curbing tax evasion

The facility also provides an opportunity for someone to be an “informer” and claim a reward. Until now, such confidential or secret information could be submitted to the tax department either by visiting the I-T investigation wing office in person (resident Indians) and by providing the information in a prescribed form and, in the case of foreign residents, they could email such evidence to the Member (Investigation)in the CBDT. A reward of up to Rs 1 crore (Benami wealth case) and up to Rs 5 crore (in the case of any other tax evasion case like holding black assets abroad), subject to certain conditions, shall be provided to the informant by the department as per the scheme currently in operation.

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The Department seeks “credible” reports on tax evasion from the public so that it can move against the offender rather than someone who sends “anonymous information sans facts” that leads to a lack of wastage of the taxman’s efforts and undue claims of reward for tipping off the department.

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