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Tuesday, July 9, 2019

2019 Union Budget Friday July 05,2019 - Key changes in the rules on filing of income tax returns announced in Budget 2019

Aadhaar, PAN interchangeability

The government announced "interchangeability of PAN and Aadhaar", meaning those who do not have PAN will be able to file income tax returns by quoting their Aadhaar number. Quoting of Aadhaar number will also be accepted instead of PAN under the Income Tax Act.

Filing ITR mandatory in these cases

The government proposed to make filing of return compulsory in the following cases:
  • Individuals depositing more than Rs. 1 crore in a current account in a year
  • Individuals spending more than Rs. 2 lakh on foreign travel in a year
  • Individuals spending more than Rs. 1 lakh on electricity in a year
  • Individuals claiming a capital gain exemption (under Section 54/54F) that brings them within the exemption limit

Pre-filling of ITR

The government has said that pre-filled tax returns will be made available to taxpayers, to not only reduce the time taken to file a tax return, but also to ensure accuracy of reporting of income as well as taxes. The pre-filled information will include details on salary income, capital gains from securities, bank interests, dividends and tax deductions. The information will be collected from sources such as banks, stock exchanges, mutual funds and retirement fund body EPFO (Employees' Provident Fund Organization).

What happens if Aadhaar not linked with PAN

The government has proposed to make the PAN allotted to a person who fails to intimate the Aadhaar number within a notified date inoperative. Currently, the Income Tax Act provides for making PAN invalid if it is not linked with Aadhaar within a notified date

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