NON-LINKING OF PAN WITH AADHAAR INCURS LATE FEES UNDER SECTION 234H
The Finance Act of 2021 recently inserted provision of section 234H of the Income Tax Act. As a result, section 234H will take effect on April 1, 2021. It deals with late fees owed to the Income Tax Department as a result of failure to notify the Aadhaar number (i.e., link the PAN with Aadhaar). The necessary obligation of attaching the Aadhaar number is addressed in section 139AA of the Income Tax Act. The provisions were put in place primarily to strengthen the process of de-duplicating the PAN database. When the following two requirements are met, late fees for non-linking of PAN with Aadhaar are payable under section 234H:
Condition 1: Under section 139AA(2), the individual is obligated to inform the Aadhaar number; and
Condition 2: The person fails to communicate the same by the deadline.
Following multiple extensions, the deadline for linking the PAN with Aadhaar is now September 30, 2021. A late fee of up to INR 1,000 will be charged if the defaulter does not pay.
THE GOVERNMENT HAS ANNOUNCED THE LLP AMENDMENT ACT, 2021, IN ORDER TO STIMULATE START-UPS AND EASE OF DOING BUSINESS
The Limited Liability Partnership ( LLP ) Amendment Act, 2021, was notified by the Ministry of Law in order to foster the start-up ecosystem and improve the ease of doing business. After the decriminalization amendment is enacted, the Act’s total number of penal provisions will be reduced to 22, with just seven compoundable offences and no non-compoundable offenses. Only three non-compoundable offences will be allowed, and only 12 defaults will be allowed.
The Amendment to the Limited Liability Partnership Act of 2021 regulates limited liability partnerships (LLP). A limited liability partnership (LLP) is a type of corporation that differs from ordinary partnership organizations. A partner’s liability in an LLP is limited to their interest in the company. The bill changes the nature of punishment for some offences by converting them to civil defaults. It also establishes special courts, defines small LLPs, and provides for the appointment of specific adjudicating officers. The following are some key features of this Act:
Certain crimes have been decriminalized
- Change of LLP Name
- Fraud is punishable
- Non-compliance with Tribunal Orders
- Offenses that are compoundable
- Provision for the Adjudicating Officers
- Provision for Special Courts
- Appellate Tribunal Appeals
- Small Limited Liability Partnership (LLP)
- Accounting Principles