Category Income Tax

How to Get Instant PAN through AADHAAR

Step 1-Go to website https://www.incometaxindiaefiling.gov.in/home. You found an option in left side in Quick Links called “Instant PAN through Aadhaar” as marked in below picture.

Step-2 Click on link “Get New PAN”

Step-3 Fill in your Aadhaar number in the provided apace, Enter captcha and confirm.

Step-4 Applicant will receive an OTP on the registered Aadhaar mobile number as a part of E KYC. Submit this OTP in the text box on the webpage.

Step-5 After submission, an acknowledgement number will be generated. Please keep this acknowledgment number for future reference.

Step-6 On successful completion, a message will be sent to the applicant’s registered mobile number and e-mail id (if registered in UIDAI & authenticated by OTP). This message specifies the acknowledgement number.

How to Download your PAN

Step 1-Go to website https://www.incometaxindiaefiling.gov.in/home. You found an option in left side in Quick Links called “Instant PAN through Aadhaar” as marked in below picture.

Step 2- Click the link- ‘Check Status/ Download PAN’.

Step 3– Submit the Aadhaar number in the provided space, then submit the OTP sent to the Aadhaar registered mobile number.

Step-4 Check the status of application- whether PAN is allotted or not.

Step 5– If PAN is allotted, click on the download link to get a copy of the e-PAN pdf.

The Major points of this facility are:

1. The applicant should have a valid Aadhaar which is not linked to any other PAN.
2. The applicant should have his mobile number registered with Aadhaar.
3. This is a paper-less process and applicants are not required to submit or upload any documents.
4. The applicant should not have another PAN. Possession of more than one PAN will result in penalty under section 272B(1) of Income-tax Act.

What is Dividend?

If you buy shares of any listed company then you are the shareholder in that company and out of the surplus/ profit and retained earnings share of profit pay out to the shareholder is called Dividend.

The value of dividend is determined on per share basis and approved by Board of directors.

Tax on Dividend Income:

Provision up to F.Y. 2019-20

Any dividend received from a domestic company is exempt from tax in the hands of shareholders under section 10 (34) of Income Tax Act. Tax has to be paid by the domestic company under section 115-O – Dividend Distribution Tax (DDT). As company paying tax on dividend distributed so it was exempt in the hands of shareholders to avoid double taxation.

However, in 2016 new section 115BBDA introduced, and the provision of this section says Dividend Income received from domestic companies @ 10% if aggregated of such dividends exceeds Rs. 10 Lac. In simple words if dividend received from domestic companies is more than 10 lac then dividend income in excess to 10 lac should be taxable in the hands of shareholders @ 10% 

Provision from F.Y. 2020-21

In budget 2020 Finance Minister abolished the Section 115-O – Dividend Distribution Tax (DDT) and Shift the burden of tax on the shareholders by withdrawing the Section 10(34) and accordingly section 115BBDA has no relevance as entire dividend is taxable in the hands of shareholders from 1st April 2020.

From 1st April 2020 Companies deducted TDS @ 10% under section 194 of Income tax Act if dividend payout is more than Rs.5000.

‘Income tax return (ITR)’ is a form in which taxpayers declare details of income, deductions, exemptions, and taxes payable on their taxable income. ITR are governing by the Rules of Income Tax Act, 1961. ITR must be filed in a prescribed format and should be submitted to the Income tax department on or before the due date to avoid the penalties. For filling returns first have to register in https://portal.incometaxindiaefiling.gov.in with the help of valid PAN card.

Different types of ITR forms which a taxpayer has to file:

FORM	PARTICULARS
ITR-1	Individuals having income from salary, House property & other sources Total income upto 50 lacs.
ITR-2	Individuals/HUF not carrying business or profession under proprietorship.
ITR-3	Individuals/HUF earning income from proprietorship
ITR-4	Opting for Presumptive tax scheme
ITR-5	LLP, Firm, Trust, Co-operative society etc. Those covered under ITR-7 shall not fill this form.
ITR-6	Companies other than those claiming exemption under section 11 of Income tax act.
ITR-7	Requires to furnish details u/s 139 [4A, 4B, 4C, 4D, 4E] of Income tax act, 1961

Benefits:

1. Improve your loan documentation process:

Filing ITR will help you in your loan application, Banks asks for ITR prior to review your application for any kind of loan. Banks ascertain your loan repayment capacity with the help of ITR.

2. Carry forward of Losses:

If anyone has suffered losses in a year, then by filing income tax return he can carry forward that loss for next eight subsequent years to set off the same by the future income as per the provision of Income Tax Act, 1961.This can help reduce the burden of tax in future years.

3. Processing of VISA:

If you are traveling overseas, foreign embassies ask you to furnish ITR return of the last couple of years at the time of the visa interview. Some embassies may ask for ITR receipts of previous three years, while some others may ask for the most recent one. ITR receipts VISA processing team to assess your income and ascertain that you will be able to looking after of the expenses on the trip.

4. Avoid Interest and penalties by Tax Authority:

Any person liable to file tax returns does not file returns within the due date, and then he is liable to pay penalty of up to Rs. 10,000 for non-filing the return within the due date. If you don’t file ITR, then belated return could be filed with extra cost to you lead to extra interest on monthly basis for the remaining tax payable.

5. Claim Income Tax Refund:

There are various banks and Companies do tax deducted at source (TDS) in a financial year. So in order to claim TDS refund, one will have to file the ITR to claim refund of the same.