Page 50 - Union Budget_2019

Union Budget 2019

10.12 Consequence of not linking PAN with Aadhaar

Proviso to Section 139AA (2) stated that PAN of the assessee shall be deemed to invalid if it is not

linked with Aadhaar within the prescribed date.
It is proposed to amend the said provision to provide that if a person fails to link PAN with Aadhaar,

the PAN allotted to such person shall be made inoperative in the prescribed manner

This amendment will take effect from 1st September, 2019
This will protect the validity of transactions previously carried out through PAN, before making it
inoperative.

10.13 Widening the scope of Statement of Financial Transactions (SFT)

Existing provisions of Section 285BA, provides for furnishing of SFT or reportable account by a specified

person where the value transactions exceed fifty thousand in aggregate. In order to widen the scope, it is
proposed to mandate the filing of SFT for persons, other than persons already specified, as may be

prescribed.

Further, the provisions of Section 285BA shall be applicable if the aggregate value of specified transactions

during a financial year is Rs. 50,000 or more. It is proposed to remove this threshold of Rs. 50,000 to even
cover the small transactions.

Currently, if a statement is considered defective by the authority and the same is not rectified within the
prescribed limit, such statement shall be treated as invalid and provisions of the Act shall apply as if such

person has failed to furnish the statement. It is proposed to amend the said provision to provide that in case
the statement is not rectified with the given time limit, it shall be considered as if such person has furnished
inaccurate information in the statement.

Consequential amendments are proposed to be made in Section 271FAA to widen the scope of penalty to

all reporting entities under proposed Section 285BA supra and ensure the correctness of information in
SFT.

These amendments will take effect from 1st day of September, 2019.

Government has set its goal to enable pre-filling of income-tax returns to ease the entire process of
return filing and reduce the consumption of time. The proposed amendments shall expand the number
of people of filing SFT so that adequate and correct information is gathered.

48