December 9, 2023

Instant PAN using Aadhaar

the Finance Ministry of India through the Income Tax department has launched a new facility which provides instant PAN (on near real-time basis) allotment based on the Aadhaar number. Remarkably, the entire process is totally paperless and free of cost. The applicant is not even required to upload any types of documents. The present article provides the briefing of the person who is eligible to avail the facility; process to be followed to avail the facility and process to be followed to check the status or download the PAN. You can obtain the instant e-PAN for free in just 10 minutes in a soft copy format. If you doubt if the e-PAN will work for all purposes, here is the answer. Instant e-PAN is equivalent to the PAN card you get after filling the detailed application form.  PAN card is mandatory for several purposes like paying income tax, filing income tax returns (ITR), opening a bank account or Demat account, applying for a debit or credit card, etc. and you can use this e-PAN for all these purposes the same way as you do with the traditional PAN card. Eligibility Every individual having valid Aadhaar Number can avail the facility. In order to avail the facility, it is important that the mobile number of the applicant is registered with the database of Unique Identification Authority of India (UIDAI). However, it should be noted that the minors cannot avail the facility. In simple terms, the facility can be availed only if the applicant satisfies the following conditions: The applicant should have a valid Aadhaar Number. The Aadhaar Number of the applicant should not be linked to any other PAN. The applicant should have a mobile number registered with the Aadhaar. Requirements of Instant PAN Facility The following are the core requisites for getting instant PAN through Aadhaar-based e-KYC: a. The applicant must possess a valid Aadhaar number that has never been linked to another PAN before. b. The applicant’s Aadhaar must be linked to the registered mobile number. c. Since the instant PAN through the Aadhaar facility offers a paperless process, applicants need not submit or upload any KYC documents. d. The applicant must not possess more than one PAN. Applicants who possess more than one valid PAN will be penalised under Section 272B(1) of the Income Tax Act, 1961. How to Apply for Instant PAN Card Through Aadhaar Step 1: Visit the official e-filing home page of the IT department (www.incometax.gov.in). Step 2: Click on the ‘Instant E-PAN’ option under the ‘Quick Links’ section of the homepage to redirect you to the instant PAN allotment webpage. Step 3: Click on the ‘Get New PAN’ button to redirect you to the instant PAN request webpage. Step 4: Enter your Aadhaar number for PAN allotment. Select the ‘I confirm that’ check box to confirm the undertaking and click on the ‘Continue’ button. Step 5: Enter the Aadhaar OTP received on your registered mobile number and click on the ‘Validate Aadhaar OTP and Continue’ button once you have agreed to validate your Aadhaar details with UIDAI. Step 6: You will be redirected to the OTP validation page, where you will be required to tick the checkbox to accept the terms and conditions and click on the ‘Continue’ button. Step 7: Enter OTP and click on the check box followed by the ‘Continue’ button. Step 8: In the next step, if your email ID is not validated, click on ‘Validate email ID’. Select the check box and click on the ‘Continue’ button. Download PAN Card The applicant needs to follow the below steps in order to check the status or download the allotted PAN: Step 1: Visit site https://www.incometaxindiaefiling.gov.in/home. Step 2: Click on ‘Instant PAN through Aadhaar’ icon provided on the left-hand side under Quick Links. Step 3: Click on the ‘Check Status / Download PAN’ icon. Step 4: Enter Aadhaar number. Step 5: Enter Captcha and click submit. FAQs Q: What should I do if I cannot update my date of birth while applying for e-PAN? If only the year of birth is available in your Aadhaar, you need to update your date of birth in Aadhaar first and apply again for e-PAN. Q: Can I apply for e-PAN through Aadhaar if I have lost the Aadhaar card? You can apply for e-PAN only if you are applying for the PAN first time and if you have a valid Aadhaar with updated KYC details. Q: What is Instant PAN? Instant PAN is a paperless, real-time PAN allotment process. It enables individuals to get their PAN instantly online, without the need for a physical application. 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Independent Director: Appointment Criteria, Process, Roles & Duties

The Board of Directors manage the operations of a company. The Board of Directors consists of individual directors of a company. As per the Companies Act, 2013 (‘Act’), certain companies must have independent directors on their Board of Directors. The Companies Act, 1956 did not provide a specific definition of an Independent Director. But Independent Directors are in the limelight as per the Companies Act, 2013. The term “Independent Director” has been defined in the Act, along with several new requirements relating to their appointment, duties, role, and responsibilities.An Independent Director is a non-executive director who is not affiliated with the company in any other manner than serving on its board. It helps the company in developing its governance standards and corporate credibility. The Independent Director is expected to provide an independent and objective perspective on the board’s decision-making process. They are responsible for monitoring the performance of the company, providing guidance to the management team, identifying and mitigating risks, ensuring compliance with legal and regulatory requirements, and safeguarding the interests of all stakeholders. This article will discuss about the Independent Director, its appointment criteria, process, roles and duties. Who is Independent Director? An Independent Director is a member of the board of directors of a company who does not have any personal or financial interest in the organization, apart from their remuneration as directors. Independent Directors are appointed to bring an unbiased perspective to the board’s decision-making process, and they are expected to act in the best interest of the company and its stakeholders.  They are not affiliated with the company’s management or the owners of the company. The Independent Director is expected to provide an objective and impartial perspective on the board’s decision-making process and act as a safeguard against conflicts of interest. Eligibility Criteria for Appointment of Independent Director Independence: The Independent Director should not have any material pecuniary relationships with the company, its promoters, or its management team. They should not be a substantial shareholder or a relative of any of the company’s directors or employees. Expertise and experience: The Independent Director should have relevant expertise, experience, and skills in the areas of business, finance, management, law, or other relevant fields. They should have a good understanding of the company’s business and industry. Age: The Independent Director should not be more than 75 years of age. However, this criterion can be relaxed with the approval of the shareholders. Qualifications: The Independent Director should have a minimum qualification of a graduate degree from a recognized university. They should have a good track record and reputation. No other disqualifications: The Independent Director should not have been convicted of any offense involving moral turpitude or economic offenses. They should not have been declared bankrupt or been involved in any other disqualifying event. Role of an Independent Director Independent Director acts as a guide, coach, and mentor to the company. The role includes improving corporate credibility and governance standards by working as a watchdog and help in managing risk. Independent directors are responsible for ensuring better governance by actively involving in various committees set up by the company. The independent directors are required because they perform the following important roles: Facilitate withstanding and countering pressures from owners. Fulfil a useful role in succession planning. On issues such as strategy, performance, risk management, resources, key appointments and standards of conduct he or she must support in gaining independent judgment to bear the board’s deliberations. While evaluating the performance of the board and management of the company, he or she needs to bring an objective view. Scrutinising, monitoring and reporting management’s performance regarding goals and objectives agreed in the board meetings. Safeguard the interests of all stakeholders, particularly the minority shareholders. Balance the conflicting interest of the stakeholders. Check on the integrity of financial information and ensure financial controls and systems of risk management are in operation. In situations of conflict between management and shareholder’s interest, aim towards the solutions which are in the best interest of the company. Establishing suitable levels of remuneration of executive directors, key managerial personnel, and senior management. Process of Appointment of Independent Director Identification: The board of directors identifies potential candidates for the role of Independent Director. The identification of candidates can be done by the Nomination and Remuneration Committee (NRC) or the board of directors. Nomination: Once the potential candidates have been identified, the NRC or the board of directors nominates the candidate to the shareholders for approval. Shareholder approval: The shareholders approve the appointment of the Independent Director by passing a resolution at a general meeting. The company will send a notice of the general meeting to all shareholders along with relevant documents such as the notice of appointment of the Independent Director, details of the candidate’s qualifications, experience, and other relevant information. Intimation to Registrar of Companies (ROC): After the appointment of the Independent Director, the company is required to intimate the ROC within 30 days of such appointment in the prescribed form. Duties of Independent Directors Duty of care: Independent Directors have a duty to act with care, skill, and diligence while performing their duties. They need to exercise the same level of care and diligence as they would while performing their duties for any other organization. Duty of loyalty: Independent Directors have a duty to act in the best interests of the company and its stakeholders. They need to avoid any conflicts of interest and disclose any potential conflicts of interest that may arise. Independence: Independent Directors have a duty to act independently and objectively while performing their duties. They should not be influenced by the management or the owners of the company. Monitor and supervise: Independent Directors have a duty to monitor and supervise the activities of the management team. They need to ensure that the management team is acting in the best interests of the company and its stakeholders. To oversee financial reporting: Independent Directors have a duty to oversee the financial reporting process of the company. They need to ensure that the financial statements are prepared in accordance with applicable accounting standards and that they provide a true and fair view

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