Asia Press Agency

Tag: PAN

  • Penalties as 11.48 Crore PANs Yet to Link with Aadhaar

    Penalties as 11.48 Crore PANs Yet to Link with Aadhaar

    The Indian government has collected more than ₹600 crore in penalties from individuals who failed to link their Permanent Account Number (PAN) with Aadhaar within the stipulated deadline. As of January 29, 2024, approximately 11.48 crore PANs are yet to be linked with Aadhaar, as revealed by Minister of State for Finance Pankaj Chaudhary in a written reply in the Lok Sabha.

     

    The penalties collection is a consequence of the Income Tax Department’s order that PAN cards would become inoperative if taxpayers failed to link them with Aadhaar by the specified deadline of June 30, 2023. Additionally, no refunds would be issued against such PANs, and a higher rate of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) deductions or collections would be applicable for non-compliance. Individuals facing inoperative PAN cards have the option to make them operational again by paying a penalty of ₹1,000.

     

    To re-activate an inoperative PAN card, individuals can follow these steps:

    1. Visit the Income Tax e-filing portal: https://incometaxindiaefiling.gov.in/
    2. Register on the portal if you are a new user.
    3. Click on the ‘e-Pay Tax’ option under ‘Quick Links’ to pay the penalty.
    4. Choose CHALLAN No./ITNS 280 for the submission of the Aadhaar-PAN linking request.
    5. Pay the penalty under Minor head 500 (Fee) and Major head 0021 [Income Tax (Other than Companies)] in a single challan.
    6. Select your preferred mode of payment.
    7. Enter PAN details, assessment year, and address.
    8. Type the Captcha code and proceed with the payment.
    9. After making the payment, log in to the Income Tax e-filing portal using PAN details, password, and date of birth.
    10. A pop-up window will appear to link PAN with Aadhaar. If not, go to ‘Profile Settings’ on the Menu bar and click on ‘Link Aadhaar.’
    11. Enter required details, such as date of birth, gender, etc., matching those on the PAN card.
    12. Verify details with those on Aadhaar, enter the Aadhaar number, and click “link now.”
    13. A pop-up message will confirm the successful linking of PAN with Aadhaar.

     

    The government’s proactive measures aim to ensure compliance with Aadhaar-PAN linkage for efficient tax administration and streamlined financial transactions.

  • SEBI Introduces New KYC Rules for Investors in Capital Markets

    SEBI Introduces New KYC Rules for Investors in Capital Markets

    The Securities Exchange Board of India (SEBI) has issued a set of new Know Your Customer (KYC) rules for investors in Indian capital markets through a master circular released on Thursday. This master circular is a compilation of various directions issued by the regulator until September 30 and includes modifications to align these circulars with the Prevention of Money Laundering (maintenance of records) Rules 2005. These changes must be implemented by December 31, 2023.

     

    Here are the key rules outlined in the master circular:

    • Uniform KYC Form: All SEBI-registered intermediaries must use the same KYC form and supporting documents for customer onboarding. The account opening form for clients will be divided into two parts. Part I will capture basic client details, while Part II will obtain additional information specific to the area of activity of the intermediary. The master circular primarily deals with the provisions of Part I of the KYC form.

     

    • PAN as Unique Identifier: PAN (Permanent Account Number) will serve as the unique identification number for all participants conducting transactions in the securities market, regardless of the transaction amount. Registered intermediaries will verify their clients’ PAN online through the income tax website, eliminating the need for the physical PAN card.

     

    • Exemptions to PAN Requirements: Some exemptions to PAN requirements include Systematic Investment Plans (SIP) of mutual funds up to ₹50,000 per year. The name on the KYC form must match the name as mentioned in the proof of identity submitted.

     

    • Acceptable Proof of Identity: Documents accepted as proof of identity include a passport, driver’s license, Aadhaar number, voter’s ID card, a letter issued by the National Population Register (NPR), and any other document as notified by the Central Government in consultation with the regulator.

     

    • Name Change on Official Documents: A document will be considered an officially valid document even if there has been a change in the name after its issuance, provided it is supported by a marriage certificate issued by the State Government or a gazette notification indicating such a change of name.

     

    • Additional Requirements for Non-Individuals: Legal entities such as trusts, partnership firms, Hindu Undivided Families (HUFs), and registered societies are subject to additional document requirements.

     

    • Mobile Number and Email Address: Registered intermediaries must upload the details of clients’ mobile numbers and email addresses on the KYC Registration Agency (KRA) system.

     

    • Reliable In-Person Verification: The in-person verification conducted by one SEBI-registered intermediary can be relied upon by another intermediary.

     

    • Acceptance of e-KYC: The e-KYC service launched by the Unique Identification Authority of India (UIDAI) will be accepted as a valid process for KYC verification.

     

    These new KYC rules are aimed at enhancing the efficiency and uniformity of the KYC process for investors in the Indian capital markets.