Aadhaar Current Affairs - 2020

Finance Minister launched instant Aadhaar based E-KYC

On May 27, 2020, the Union Finance Minister Nirmala Sitaraman launched instant Aadhaar based E-KYC.

Highlights

The facility will be available for PAN applicants that possess valid Aadhaar number. They should also have a mobile number registered with Aadhaar. The process of allotting PAN is paperless and is also free of cost.

Union Budget

The instant Aadhaar based E-KYC was introduced by the Finance Minister in the Union Budget 2020-21. She announced that a system will be brought in that will instantly provide PAN without the requirement of filling up of application form.

About PAN

PAN is Permanent Account Number. It is a 10-digit alpha numeric number that is issued by Income Tax Department. It enables income tax department to link the transaction of the person with the department. The transactions include TDS, TCS, tax payments, income returns, correspondence, specified transactions, etc.

It is now mandatory to provide PAN on return of income. Also, it was made mandatory to provide PAN for all challan payments since 2005.

Ordinance passed for 100% Tax Exemption on donations to PM Cares Fund

On March 31, 2020, the Government of India passed an ordinance to allow 100% exemption on donations made on PM Cares Funds. The ordinance has also extended the time limit of direct and indirect tax filings to June 30, 2020.

Key Features on Direct Taxes

  • The last date for filing Income Tax returns has been extended to June 30, 2020
  • The Aadhaar-PAN linking that has been made mandatory has been extended to June 30, 2020. If not linked the GoI had earlier warned about cancelling such PAN registrations.
  • The deadline of Vivad se Vishwas Scheme has also been extended to June 30, 2020.

Key Features on Indirect Taxes

The last date for indirect taxes of the following has also been extended to June 30,3030

  • Central Excise Returns
  • Taxes paid under Customs Act, 1962
  • Taxes paid under Sabka Vishwas Legal Dispute Resolution Scheme, 2019.

PM Cares Fund

The funds donated to PM Cares Fund are to be 100% exempted from tax under Section 80G of Income Tax Act.