Keep Away From Benami Transactions, Warns Income Tax Department

Keep Away From Benami Transactions, Warns Income Tax Department

The taxman is the nodal department to enforce the Benami Act in the country

New Delhi: The Income Tax Department on Wednesday warned people to “keep away” from benami transactions, cautioning that violations under the newly enacted law invites criminal prosecution and rigorous imprisonment up to seven years. The department put out its alert in a public advertisement published in leading national dailies.

Titled “Keep Away from Benami Transactions”, it described black money as a “crime against humanity” and urged “conscientious citizens to help the government in eradicating it”.

“Benamidar (in whose name benami proper is standing), beneficiary (who actually paid consideration) and persons who abet and induce benami transactions are prosecutable and may face rigorous imprisonment up to 7 years besides being liable to pay fine up to 25 per cent of fair market value of benami property,” the I-T advertisement said.

The tax department attached benami assets worth Rs. 1,833 crore across the country, issued 517 notices and made 541 attachments, from November 1, 2016 to October 2017.

The department started initiating action under the new Benami Transactions (Prohibition) Amendment Act, 2016 from November 1, 2016.

The advertisement added that “persons who furnish false information to authorities under Prohibition of Benami Property Transactions Act, 2016, are prosecutable and may be imprisoned up to 5 years besides being liable to pay fine up to 10 per cent of fair market value of benami property”.

It added that benami property “may be attached and confiscated by the government” and that this action will be in in addition to prosecution under the Income Tax Act of 1961 for tax evasion charges.

The Income Tax Department is the nodal department to enforce the Benami Act in the country.

[“Source-ndtv”]

How to Link Aadhaar With PAN Card Online to File Tax Returns

How to Link Aadhaar With PAN Card Online to File Tax Returns

HIGHLIGHTS

  • You can link your Aadhaar and PAN via the e-filing website
  • For this to work, your PAN and Aadhaar details need to match
  • In case of a discrepancy, you will soon be able to link via OTP

With July 31 here, it is high time you file your IT returns for the 2017 fiscal. Of course, before you can go ahead with filing income tax returns, you need to link Aadhaar number and PAN card as it became mandatory from July 1. According to a new amendment to the tax proposals in the Finance Bill for 2017-18, anyone who has a PAN card must provide their Aadhaar number to the principal director general of income tax (systems) or DGIT (systems). If you want to link the two but are not sure how to do it, you can use the e-facility launched by the Income Tax department, which is the easiest way to link the two. In fact, you don’t even need to sign in to the IT website to link your Aadhaar number and PAN card.

ALSO SEEHow to Link Aadhaar and PAN card by SMS

How to link PAN card with Aadhaar online

If you want to link your Aadhaar with PAN card, head over to the Income Tax e-filing portal and follow the steps below:

  1. On the website, click on the link on the left saying Link Aadhaar.
  2. Now, enter your PAN number, Aadhaar number, name as per Aadhaar, and the Captcha, and then click on Link Aadhaar.
  3. This should link the PAN and Aadhaar, but if there is any discrepancy in your details, you’ll receive an Aadhaar OTP to confirm the linkage. Enter the OTP and click on Save to continue.
  4. You can also link the details after logging in to the income tax website. Log in as you normally would and then click on Profile Settings in the top menu.
  5. Next, find Link Aadhaar.
  6. Enter your Aadhaar number and click on Save to continue.

This will only work if the details on the PAN and the Aadhaar card match. In case of any discrepancies, you can upload a scan of your PAN card, or register via OTP on your linked mobile number as mentioned above.

ALSO SEEWondering How to Pay or File Income Tax Returns Online? These Websites Can Help

That’s all there is to it right now. Did this guide help you in linking your PAN to your Aadhaar card? Let us know via the comments, and check out the rest of our How-to articles.

The process of linking Aadhaar and PAN is, of course, mandatory only if you plan to file tax returns on July 1 or later. This means you can choose to file the tax returns today, and need not link the two IDs. Also, according to the Supreme Court ruling, those who do not have not been allotted Aadhaar number yet need not scramble for it, as the process is only for Aadhaar-holders. This has come as a major relief for those worried whether their PAN cards would become invalid if they do not link the two by July 1.

[“Source-gadgets.ndtv”]

Flipkart, Amazon, Snapdeal Argue Against GST’s Tax Collection at Source Provision

Flipkart, Amazon, Snapdeal Argue Against GST's Tax Collection at Source Provision

Flipkart, Amazon, Snapdeal Argue Against GST’s Tax Collection at Source Provision
HIGHLIGHTS
Flipkart, Amazon, Snapdeal partnered to lobby against a GST provision
They want the tax-collected at source requirement removed
They argue that this provision will increase complexity and costs
At a press conference organised by FICCI on Thursday, the heads of Amazon, Flipkart, and Snapdeal all found common cause as they expressed their worries about the TCS (Tax Collection at Source) provision of the GST (Goods and Services Tax). Under this provision, online marketplaces are responsible for collecting – and paying – taxes on behalf of their sellers. This is something that all three companies, the major players in the e-commerce space in India, are against, as they argue it will hamper the growth of e-commerce.

Currently, e-commerce operators share data on sales to the government periodically to ensure tax compliance. In the proposed model, additional TCS reporting, reconciliation, and governance could lead to greater complexity of business operations, and block capital, the companies argued. They contended that the clause is detrimental towards e-commerce companies that have brought in
billions of dollars of investment. The draft model GST law is due to be finalised at the end of this month.

Kicking things off, Snapdeal co-founder and CEO Kunal Bahl stated that “e-commerce is vociferously for GST.” This was a sentiment that was echoed by Amit Agarwal, Amazon India Head, who added that TCS can change the growth trajectory of e-commerce, and that is a cause for concern. “Tax collection at source is an exception created for online, it isn’t there for offline,” he added.

“All of us are investing ahead of scale and a lot of the investment is going into building the right infrastructure and ecosystem, in training/educating sellers and bringing them online and that attracts consumers to come to our marketplaces… This flywheel has been spinning for the last few years… when the ecosystem gets excited, a lot of other industries benefit,” Agarwal said.

Flipkart co-founder Sachin Bansal added, “none of us is saying that GST is bad, it is a transformative step for e-commerce,” but added, “tax collection at source is an area of concern in GST for e-commerce.”

“Due to TCS, close to RS. 400 crores per annum of capital will be locked into the system,” he added. “It will hamper working capital.”
Given that there are thousands of sellers and merchants on each platform, the shopping portals say TCS will be cumbersome and time consuming, and discourage sellers. “Success of e-commerce industry is contingent upon the success of small businesses,” Bahl added.

“The proposal, while adding needless complexity for the sellers, provides no benefit to the tax authorities and will lead to duplication of information followed by the need for its reconciliation,” Bahl also said.

They say a thorough impact analysis of this tax provision on the online marketplace has not been carried out diligently. Now with the draft model GST law due to be finalised at the end of the month, the urgency is apparent.

FICCI Secretary General Dr A Didar Singh also said that “e-commerce created the first national market of the country, GST just enhances that.”

On the risk of tax evasion by sellers, Bansal said that sharing of information can help prevent this. “Tax evasion can be avoided by sharing of information,” he said. “We are already doing this with the states.”

Gadgets 360 has reached out to all the three companies seeking further comments, and we will update this article on getting replies.

Tags: Flipkart, Snapdeal, Amazon, Goods and Service Tax, GST, FICCI, Lobbying, online marketplaces, ECommerce

[“Source-Gadgets”]

IRS Looking to Tax Free Lunches Offered at Tech Firms

employee lunch

Federal tax officials may bring more reality to the old adage “There’s no such thing as a free lunch.”

According to reports from the California Bay Area and Silicon Valley, the Internal Revenue Service is considering whether to tax free lunches and other perks routinely offered to employees at tech companies.

Silicon Valley Mercury News reported recently that employees at companies like Facebook and Google may have to pay taxes on free meals.  It’s a fringe benefit that their employers use as a selling point to recruit talented employees and keep them working on-site. A free lunch — and more — is seen by these and other companies as something they can offer to improve the workplace environment and morale.  But now the IRS is considering making that less free by taxing the benefit.

There are no details about what the tax would be on the free lunches offered at these workplaces. A report by The Wall Street Journal details debate among tax experts including tax attorneys practicing in the Silicon Valley.  They say the IRS has begun to focus on whether the meals constitute part of a compensation package.

Of course, the implications resonate far beyond Silicon Valley.

Businesses of all sizes offer a variety of benefits for employees that go beyond traditional payment for services.  Free coffee and soda beverages; free snacks; free meals; free dry cleaning services; free bus transportation; free health clinic services — the list goes on, and it’s all over the country.  Rules are complex about which additional compensations may constitute taxable perks.

The concern for the rest of us who do not get free lunches, is whether the American taxpayers are in effect giving already-highly-paid individuals a tax break.  Mark Maremont, a reporter for the Wall Street Journal, called the food spreads “lavish buffets.”

A former Google marketing employee told MercuryNews.com that the free lunches his wife, a current Google employee, still enjoys are “a phenomenal convenience, a terrific motivator, and a great social thing.” He said the proposed tax is “stupid.”

Employee Lunch Photo via Shutterstock

[“source-smallbiztrends”]