Latest Updates

Latest Business Update

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.

How GST to be connected with PAN card?

Significance of Pan Card in GST Registration

The Income Tax Department of India makes it necessary for people and business entities to outfit the PAN card details for every one of those individuals who need to pay central excise duty and service tax. It is one of the docs that is required while paying goods and services tax or GST.

The GST arrangement of tax collection likewise replaces the various taxes that the central and the state governments force. With regards to the new systems, a unified approach is the thing that the government needs to build up. The various taxes, for example, food, VAT, luxury, corruption, buy, advertisement tax go under the top of GST or the goods and services tax.

Starting GST utilizing PAN

The PAN card is required for the GST enrollment process.

  • Most importantly, a temporary registration number which is known as the GSTIN or the Goods and Services Tax Identification Number is just to be given to the individuals who hold the PAN card and the details will be actually same to what is referred in that.
  • In the new tax structure, the candidates will get an unique registration against the PAN alongside a temporary ID of the state where the business exists.
  • As indicated by the new ruling of the government that the organizations with different business portions can enroll a few times with the system of GST with one PAN in particular. But, every single one of these sections will be considered as a different business structure the extent that the tax calculations are concerned.

Category of individuals

The accompanying category of individuals must give a copy of the PAN card during GST enrollment. Hence, they should comprehend the mechanism of NSDL PAN apply and get the card as sooner as feasible for the procedure of GST enrollment.

  • Individual or sole owner
  • HUF
  • Indian and foreign organizations whether public or private.
  • Association firm including the Limited Liability Company.

Different Types of GST Enrollment

The business elements need to give a few docs and need to submit them on the portal of GST for the enrollment. Take a fast look at the sorts of GST enrollment and the reason. regardless the type of enrollment, it is important to outfit the PAN details to achieve the procedure.

  • With regards to common enrollment of the taxpayers and for the supply of those goods and services that are taxable, the PAN card of the organization and the approved signatory is required. Moreover, it is important to give the PAN details of tall the directors of the organization.
  • For TDS enrollment that related with the tax that is deducted at source, the PAN number of the individual who is enlisted is required.
  • With regards to TCS enrollment, the PAN number of the candidate being enlisted is additionally to be given as one of the documents.

The Goods and Services Tax Identification Number or the GSTIN that is a major part of the new number that is explicit to each state, which relies upon PAN. Consequently, the fifteen-digit registration number involves the state code, PAN, the check digit, and the entity code. All the GST enrollments are executed dependent on PAN.

Searching GSTIN by PAN

The Goods and Service Tax Identification is one of the key parts of the GST system. In the event that you are searching for the number, the PAN card comes to help as you have to look by the details referenced in the card. Check the accompanying details.

  • The initial step is to visit the portal of GST.
  • When you are in the site, you need to click on the tab “Search Taxpayer”
  • You need to choose the option”Search by PAN”
  • Mention the PAN number in the field and the captcha code that is given underneath.
  • At last, you need to clock on “Search” and the site will show the details you have referred against the PAN details you give.

It is very evident that the PAN number is the premise or the system of GST enrollment method. Regardless of whether it is to launch the procedure of enrollment or to search for the GSTIN or the unique code that plans to improve the tax structure of your business, utilizing the PAN card is necessary. In case you need to finish the enrollment now, you need to apply for the PAN card now and complete the process.

Enquire with Certicom Consulting in case of any queries.

PAN and AADHAR are exchangeable for income tax purposes

Section 139A sets out the conditions in which an individual is required to get PAN. In current situation, PAN must be mentioned in all communications with the Income-tax Dept and in indicated financial transactions which surpass the threshold limit.

It has been seen by the Govt., that occasionally people going into high-esteem transactions, for example, purchase of foreign currency or enormous withdrawal from the banks, don’t have a PAN. In this manner, the mandatory conditions for getting PAN has been proposed to be relaxed as under:

  • An individual may outfit his Aadhaar number in lieu of PAN, and such individual will be designated a PAN in the recommended way;
  • Each individual who has been designated a PAN, and who has linked his Aadhaar number with PAN according to section 139AA, may furnish his Aadhaar number in lieu of a PAN for all the transactions where citing of PAN is required according to Income-tax Act.

Considerable changes have also been proposed in the penal arrangements of Section 272B in order to impose a penalty of Rs. 10,000 for each default in the following cases:

  • If person (i.e., banks, financial institution, and so on.) fails to get or validate the PAN or Aadhaar.
  • In case the assessee fails to quote or verify his PAN or Aadhaar in specific transactions.

Enquire at [email protected] or visit Certicom Consulting for more details.