Direct Tax
Last date for linking of PAN Aadhaar extended
Press Release dated 28 March 2023
- The last date for linking PAN and Aadhaar number has been extended to 30 June 2023, which means persons can still intimate their Aadhaar to the prescribed authority for linking without facing repercussions till this extended date.
- Earlier, the provisions of the ITA mandated that every person having PAN as on 1 July 2017 and eligible to have Aadhaar was required to link PAN and Aadhaar on or before 31 March 2023 on payment of a prescribed fee. However, this date has now been extended to 30 June 2023.
- From 1 July 2023, the PAN of taxpayers who have failed to intimate their Aadhaar shall become inoperative and may lead to no issuance of refund (if any) or interest receivable on such refund for the period during which the PAN remains inoperative.
- TDS/TCS shall also be deducted/ collected at a higher rate as provided by the ITA.
- However, the PAN can be made operative again in 30 days upon intimation of Aadhaar to the prescribed authority after payment of fee of INR 1000.
- A person exempted from linking the PAN and Aadhaar Number includes any individual who is 80 years or more, non-resident as per the Act and individuals residing in states of Assam, Jammu and Kashmir and Meghalaya.
Cost of inflation index notified by the central governmnent
Notification S.O. 1692 (E) [NO. 21/2023/F.NO. 370142/5/2023- TPL] dated 10 April 2023
- To calculate capital gains under Section 48, the cost of inflation index is notified by the Central Government at the beginning of every financial year.
- For FY 23-24, the provisional cost of inflation index is 348, which shall be effective from 1 April 2023.
Clarification regarding the deduction of tds on salary for the upcoming financial year
Circular no. 4 OF 2023 [F.NO. 370142/06/2023-TPL] dated 5 April 2023
- In Budget 2023, the new tax regime was made as 5the default tax regime for FY 23-24 and onwards. However, under sub-section (6) of Section 115BAC, a person may exercise an option to opt out of it. A person not having income from business and profession can exercise this option every year.
- Concerns have been raised regarding tax to be deducted at source on salary income u/s 192. The employer (deductor) would not know if the employee would opt out of the new regime or not.
- In order to avoid genuine hardship in such cases, the Central Board of Direct Taxes (CBDT) directs that the employer shall seek information from each of its employees having income from salary regarding their intended tax regime and each employee shall intimate the same to the employer.
- If the employee does not make an intimation, it shall be presumed that the employee continues to be in the default tax regime (115BAC) and has not exercised the option to opt out of new tax regime.
- Accordingly, the employer shall compute his total income and deduct the TDS under Section 192 in accordance with the rates prescribed in the Act.
- It is also clarified that the intimation alone would not amount to exercising the option and the person shall be required to exercise this option separately in his/her return of income.
Indirect Tax
Customs
Waiver of interest on import duty paid through ECL till resolution of technical difficulties
Customs (Waiver of Interest) Third Order, 2023 – Order No. 3/2023-Cus (NT) dated 17 April 2023
To address the concern of delayed import duty payments through Electronic Cash Ledger (ECL) due to technical difficulties faced on the Common Portal, the CBIC has waived the whole of the interest leviable thereon from 14 April 2023 till such time the technical difficulties are removed. Such waiver is subject to the following conditions: (a) duty and interest have been paid within three days (including holidays) from the date of removal of such system inability at the Common Portal, which shall be certified by the DG systems, (b) the importer undertakes at the port of import to not pass on the incidence of interest paid, and (c) provisions of Section 27 of Customs Act shall govern the consequential refund of such interest paid.
Note: The Central Board of Indirect Taxes and Customs (CBIC) had granted the first waiver of interest for the period 1 April 2023 to 10 April 2023, vide Office Order No. 1/2023-Cus (NT) dated 6 April 2023. The same was subsequently extended for the period 11 April to 13 April vide Office Order No. 2/2023-Cus (NT) dated 11 April 2023]
CBIC extends an exemption to deposits into ECL for Customs purpose
Notification No. 31/2023-Cus (NT) dated 26 April 2023
The CBIC has extended the exemption to deposits into ECL till 30 June 2023, thereby amending Notification No. 18/2023-Cus (NT). As per the said Notification, deposits – (i) with respect to goods imported or exported in Customs stations where a customs automation system is not in place, (ii) with respect to goods imported or exported in International Courier Terminals, (iii) with respect to accompanied baggage, (iv) other than those used for making electronic payment of any duty of customs including surcharges and cesses, IGST, GST Compensation Cess, interest, penalty, fees or any other amount payable under Customs Act or Customs Tariff Act, are exempt from all provisions of Section 51A of Customs Act, i.e., payment through ECL.
Foreign Trade Policy
One-time Amnesty for Advance Authorization and EPCG schemes
Public Notice No. 2/2023 dated 1 April 2023 r/w Public Notice 7/2023 dated 18 April 2023
The Directorate General of Foreign Trade (DGFT) has notified “Amnesty Scheme for one-time settlement of default in export obligation by Advance and Export Promotion Capital Goods (EPCG) Authorization holders”. The Scheme covers: (i) authorizations issued under the two schemes (all variants) under the Foreign Trade Policy 2009-2014 till 31 March 2015, and (ii) authorizations issued under the two schemes (all variants) under the Foreign Trade Policy 2004-2009 whose export obligation period (original or extended) was valid beyond 12 August 2013.
Any authorization holder choosing to avail this benefit must complete the online registration process on or before 30 June 2023 and payment of customs duty plus interest with the jurisdictional Customs authorities shall be completed by 30 September 2023.
It has further been clarified that all pending cases of default in meeting export obligations can be regularized on payment of proportionate exempted customs duties and interest payable is capped at a maximum of 100% of such exempted duties. However, no interest is payable on the portion of additional customs duty and special additional customs duty.