June 20, 2024 | CA B K Goyal & Co LLP

Section 33F – Aadhaar (Targeted Delivery Of Financial And Other Subsides, Benefits And Services) Act, 2016

Aadhaar (Targeted Delivery Of Financial And Other Subsides, Benefits And Services) Act, 2016 / CA Bhuvnesh Goyal / June 20, 2024

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Section 33E – Aadhaar (Targeted Delivery Of Financial And Other Subsides, Benefits And Services) Act, 2016

Aadhaar (Targeted Delivery Of Financial And Other Subsides, Benefits And Services) Act, 2016 / CA Bhuvnesh Goyal / June 20, 2024

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AB-MGRSBY: Ayushman Bharat Mahatma Gandhi Rajasthan Swasthya Bima Yojana

Government Schemes / CA Bhuvnesh Goyal / June 20, 2024

Rajasthan Chief Minister Ayushman Arogya Scheme

The Indian state of Rajasthan, is one of the most beautiful states in the country. It is rich in folk culture and tradition with a humble population of 6 crore people. The main occupation of people here is agriculture, followed by trade and business. According to the World Bank, Rajasthan also is one of the lowest-income states of India. People belonging to low-income groups, unfortunately, cannot avail facilities like salaried jobs or health care. However, the government is striving hard to eliminate challenges related to availing medical facilities. Schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana and Ayushman Bharat Mahatma Gandhi Rajasthan Swasthya Bima Yojana are being introduced for providing quality health care services. What is Ayushman Bharat Mahatma Gandhi Rajasthan Swasthya Bima Yojana (AB-MGRSBY)? Ayushman Bharat Mahatma Gandhi Rajasthan Swasthya Bima Yojana, is a health insurance scheme introduced under Chief Minister Ashok Gehlot’s government. It was announced on 30th of August 2019. The AB-MGRSBY is expected to be very helpful for the beneficiaries because it is an integration of AB-PMJAY and BSBY schemes. These two schemes were merged to include more number of eligible families into one scheme and provide quality health care services. Key Highlights of Ayushman Bharat Mahatma Gandhi Rajasthan Health Insurance Scheme The Ayushman Bharat Mahatma Gandhi Rajasthan Swasthya Bima Yojana was previously known as Bhamashah Swasthya Bima Yojana. However, this scheme was launched again in January 2021 after combining with the AB-PMJAY. Take a look at the key highlights of the Ayushman Bharat Mahatma Gandhi Rajasthan health insuranc scheme 2021: Scheme Ayushman Bharat Mahatma Gandhi Rajasthan Swasthya Bima Yojana Launched By Government of Rajasthan Beneficiaries Citizens of Rajasthan Launched On 30 January 2021 Health Insurance Cover Rs 5 lakh Coverage Type Family Floater Policy Tenure 1 Year Number of Medical Packages 1576 Who is Eligible? Families under Socio Economic Caste Census 2011 Families under National Food Security Official Website health.rajasthan.gov.in Hospitals Both government and private empanelled hospitals Features And Benefits Of AB-MGRSBY 1. Cashless Hospitalisation:- The beneficiaries of Ayushman Bharat Mahatma Gandhi Rajasthan Swasthya Bima Yojana can avail cashless hospitalisation in a network/empanelled hospital. This list is available in this article under the heading “List of Hospitals That Cover under AB-MGRSBY”. As the name suggests, a cashless treatment means that the beneficiary does not have to bear the cost of a medical treatment. These costs will be borne by the government. 2. Coverage For Medical Needs:- AB-MGRSBY offers holistic coverage that pays for the entire cycle of a medical emergency, including follow-up care. Here is a list of medical facilities that are covered under the scheme: hospitalisation expense benefits Daycare treatment benefits if applicable Follow-up care benefits Pre and post hospitalization expense benefits Newborn child/children benefits 3. High Sum Insured:- AB-MGRSBY offers a very good amount of sum insured to the beneficiary family. The main sum insured is Rs. 5 lakh per year for each family covered under the scheme. It is segmented as the following: Rs. 50,000 for secondary illnesses Rs. 4,50,000 for tertiary illness 4. A Large Number Of Empanelled Hospitals:- More the number of hospitals empanelled under the scheme, the more it is beneficial at the time of a medical emergency. If an empanelled hospital is present in the vicinity of the beneficiary, he/she can reach there faster and treatment can begin. The AB-MGRSBY has many hospitals registered to treat patients under the scheme. 5. Health Insurance On Family Floater Basis:- A health insurance plan can be of many types. The most common types are Individual, family floater, and group health insurance plans. Among these, the AB-MGRSBY scheme is a family-floater plan where the sum insured can be used by all members of the family. This is beneficial as compared to other plans because a balance can be created while making claims. For example, individual members of a family can require treatment at different times. A family floater plan can ensure that all members can avail proper medical facilities. What is Not Covered? Minor conditions that do not require hospitalisation, unless mentioned in the package list. Cost of vitamins and tonics unless part of the required treatment. Dental treatments carried out for enhancing aesthetics. Surgical procedures for resembling the opposite sex including hormone replacement therapy. Vaccinations are not covered. Plastic surgery unless required to correct an injury-related deformity. Circumcision unless medically required due to an accidental injury. Attempted suicide and suicide. The persistent vegetative state as a result of brain damage. Expenses related to medical treatments due to overuse of any intoxicating substance. Congenital external diseases, anomalies, or defects. Eligibility for Ayushman Bharat Mahatma Gandhi Rajasthan Swasthya Bima Yojana Members of the eligible beneficiary family based on SECCO that rely on economic, social and caste census. Family members falling under the National Food Security Act (NFSA) Families must be Rajasthani natives Beneficiaries must have Aadhaar card, Bhamashah card/Acknowledgement Slip Members of Ayushman Bharat Scheme Documents Required To Apply For AB-MGRSBY Bhamashah Card (Jan Aadhaar Card) / Bhamashah Acknowledgement Slip for families falling under the National Food Security Act (NFSA) Ration Card Number Eligibility letter of Ayushman Bharat Scheme written by Hon’ble Prime Minister is required 23 digit HHID number Aadhaar Card How To Enrol in AB-MGRSBY A family of beneficiaries do not need to carry out a separate enrolment process to enter Mahatma Gandhi Rajasthan Swasthya Bima Yojana. Since this scheme has not yet received a full-fledged launch, a specific process for registration of AB-MGRSBY has not been rolled out. However, the beneficiaries can identify themselves under the scheme by checking the relevant information from the Jan soochna portal. FAQs Are daycare treatments covered under Ayushman Bharat Mahatma Gandhi Rajasthan Swasthya Bima Yojana? Yes, various daycare treatments as listed in the AB-MGRSBY package are covered under the scheme. What is the meaning of secondary and tertiary diseases in terms of AB-MGRSBY? Secondary diseases are general health ailments like extraction of a tooth, fractures, tonsillectomy, etc. while tertiary diseases could be conditions related to critical illnesses, for example, Lung Injury repair, Thyroplasty, Colonoscopy, etc. Practice area’s

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jan aadhar

Government Schemes / CA Bhuvnesh Goyal / June 20, 2024

Jan Aadhaar Card is an official document in Rajasthan, which will result in the creation of a database containing data on every resident of Rajasthan. On December 18, 2019, the Rajasthan government announced the introduction of the Jan Aadhaar Card. This Jan Aadhaar card will succeed the previous government’s Bhamashah card. All advantages formerly available via the Bhamashah card will be available through the Rajasthan Jan Aadhaar card. It may also be used to identify and address verification for family members and associates. This Jan Aadhaar card will be identified by a ten-digit number and may also be used to get benefits under government initiatives. Jan Aadhaar scheme objective The primary goal of the Rajasthan Jan Aadhaar scheme is to offer the residents of Rajasthan access to 56 government initiatives and other services through this new card. All biometric data will be freely accessible via this card. The Rajasthan administration is contemplating using this card in place of the newly developed ration card; this would save money since the expense of creating a ration card would be eliminated, and this card would perform all functions. Jan Aadhaar programmes To apply for several benefit initiatives sponsored by the Rajasthan Government, a Jan Aadhaar number is mandatory. Numerous citizens lack this Jan Aadhar identification number. In this case, and until the recipient’s Jan Aadhaar card number is provided, the usage of enrollment receipts indicating that the government has recognised the beneficiary is necessary for the proper execution of these initiatives. Rajasthan residents may now register for several initiatives using their enrolment receipt number even if they do not have a Jan Aadhaar card. Officials will verify all applicants within the specified time frame; if the officer does not verify all applicants within the specified time frame and any discrepancy is discovered in the applicant’s documentation, the verification officer will bear responsibility. According to the plan put up by the Rajasthan government, each family in the state would be assigned a unique identification number, a Jan Aadhar card, and a card number by compiling a repository of all relevant information. The residents of Rajasthan would reap the benefits of this large customer base via government initiatives, e-commerce, and insurance services, among other means. The Jan Aadhaar card, which has the family identification number of ten digits, is given to each family once they have been enrolled. Jan Aadhaar related schemes Kisan credit card Allowance for unemployment EPDS Ganganagar Sugar Mill, Rajasthan Assistance plan in the event of the beneficiary’s natural or accidental injury and death Shrijan Employment Scheme Widow Scheme of Chief Minister Sambal Chief Minister’s Scholarship Program for Higher Education Scooty Distribution Scheme for Female Students at Devnarayan Girl Student Scholar Incentive Scheme of Devnarayan Jan Aadhaar administered services Registration of deaths and births Registration of students on the Shala Darpan Portal Application for a Bonafide Certificate E-miter E-mitra Plus eVault Complete Examination Solution System of information for disaster management Jan Aadhaar card benefits This programme will provide openness between the administration and the state’s residents. Corruption in the state will be decreased due to the implementation of this strategy. The Jan Aadhaar card program 2022 makes it simple to identify the appropriate recipient. This plan is open to residents of the state who are at least 18 years old. Jan Aadhaar card features The applicant must be a resident of Rajasthan permanently. Rajasthan’s government would have to pay around Rs 17-18 crore to issue this latest Jan Aadhaar card. According to the state administration, this new card would enable the addition of more initiatives than ever before. While the Bhamashah card included a chip, this Janadhar card has a QR code. After scanning this QR code, the cardholder’s résumé will be shown on the computer monitor. Online registration To begin the application process, the candidate must first visit the official Janadhar card website. Visit the official website and you will be presented with the main page. Click on the Jan Aadhaar Enrollment link on the main page to begin the process. This selection will open the next page in front of you, where you will find the Citizen Registration option. Click on this option to begin the process. The registration form will appear in your browser window after choosing this option. You must complete this Jan Aadhar card form with all the information requested, including your name and Aadhaar number. Once you’ve completed the Jan Aadhar card form and entered all of your pertinent details, click the “submit” button. Next, tap on Citizen Enrollment to access the enrollment form. Once you’ve finished this, the following page will appear on your screen. On this page, you must input your registration number. FAQs What is Jan Aadhar? Jan Aadhar is a unique identification system implemented by the Government of Rajasthan, India, designed to provide a single identification number to each family in the state. This initiative aims to streamline the delivery of government services and benefits by linking various welfare schemes to one identification number. How does Jan Aadhar differ from Aadhaar? While both Jan Aadhar and Aadhaar are unique identification systems, Jan Aadhar is specifically designed for the residents of Rajasthan and focuses on families as units of identification. Aadhaar is a national initiative that provides individual identification numbers. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal

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Share Purchase Agreement

learn / CA Bhuvnesh Goyal / June 20, 2024

Share Purchase Agreements (SPA) are legally binding documents used in the sale of a company’s shares. They outline the terms and conditions of the sale and provide legal protection for both parties involved in the transaction. What is a Share Purchase Agreement? A share purchase agreement is a legal document used to transfer ownership of a company’s shares from the seller to the buyer. It is an important document that outlines the terms and conditions of the sale, including the purchase price, payment terms, and any warranties or representations made by the seller. The SPA is designed to protect the interests of both parties and ensure that the sale is conducted in a fair and transparent manner. What Does a Share Purchase Agreement Cover? Purchase Price: The price the buyer will pay for the shares. Payment Terms: How and when the buyer will pay for the shares. Representations and Warranties: Statements made by the seller about the company’s financial, legal, and operational status. Covenants: Promises made by the seller to the buyer to perform certain actions or refrain from doing certain things. Conditions Precedent: Conditions that must be met before the sale can be completed, such as obtaining regulatory approvals. Indemnification: Provisions that protect the buyer in case the seller breaches the agreement. Contents of a Share Purchase Agreement The agreement contains all the terms and conditions that are finalised when it comes to the sale and purchase of the shares of the company. The following are listed in a share purchase agreement: Name of the company Par value of shares Name of purchaser Warranties and representations made by seller and purchaser Employee benefits and bonuses Number of shares being sold Details of the transaction Indemnification agreement for unforeseen costs How is a Share Purchase Agreement Structured? Introduction: This section outlines the purpose of the agreement and provides background information on the parties involved. Definitions: This section defines key terms used in the agreement. Sale of Shares: This section outlines the terms and conditions of the sale, including the purchase price, payment terms, and any conditions precedent. Representations and Warranties: This section outlines the seller’s statements about the company’s financial, legal, and operational status. Covenants: This section outlines the promises made by the seller to the buyer. Indemnification: This section outlines the provisions that protect the buyer in case the seller breaches the agreement. Miscellaneous Provisions: This section covers any other important provisions, such as the governing law and dispute resolution. Drafting of a Share Purchase Agreement Content Details Parties to the agreement The parties generally comprise the seller and the buyer.The exception being that sometimes the parties are companies that are incorporated only for executing the SPA. In these cases, the substantive entities’ principles need to be added as covenanters or guarantors to ensure commitment to the contract. Recitals The transaction facts must be spelt out in the recitals, and the relationships must be identified and laid down. The objective of the transaction and the role of the parties must also be stated. Definitions and Interpretations This is important as definitions provide a context and meaning to certain words and phrases used in the agreement. Consideration and Sale of Shares This section provides an exhaustive structure of payment needsThe deposit to be given at the time of execution The sum that is payable on closing (pricing formula determined on a case to case basis) The sum held in escrow to be set off against indemnities and breaches of warranties and representations The amount payable in case any security is registered against any company If the payment is made in tranches, the details of the trigger for the payments should be spelt out. Conditions Precedent This clause needs to be exhaustive, providing for all authorisations, permissions and permits necessary (internal and external) and the person responsible for obtaining each of these.A clause that provides a right to waive any condition is also included to provide flexibility. Closing It is prudent to include a closing memorandum listing the actions that will occur on the closing day, including the board resolutions to be passed. Conditions Subsequent This clause is rare. However, there are some permits and obligations which are residuary in the conditions subsequent. Protection must be offered to the buyer in case any of the conditions subsequent are breached. Covenants by the parties Covenants provide comfort to both parties. The purchaser requires them from the seller with regard to themanagement of the company between signing and closing. Vendor’s Representations and Warranties This clause details the seller’s standing, market reputation, rights over the shares, capital structure of the company, list of directors, and the number of shares owned by the seller. It should also provide information on compliance with laws and any threatened litigation or dispute. Buyers’ Representations and Warranties All of the buyer’s rights, ability to pay the compensation and enter into subsequent agreements are included here. If the buyer is a corporate, then the corporate status is also highlighted. Obligations pre and post-closing This is similar to the representations and warranties clause, but it is included to protect the interests of the parties. Confidentiality This is the standard state of terms of the agreement It is important when confidential information has been exchanged and when the parties are listed companies. The validity of the clause is 18 months to 2 years. Indemnification This clause is highly negotiated. This clause also provides for the process of reimbursement of claims and often the most scrutinised clause. Particular attention must be paid to ensure that the buyer is adequately covered in cases of issues relating to the company before the transaction but emerge post-closing. Notice This clause is overlooked but is important. The location and how the notice must be dispatched and if the parties are ready for the electronic notices must be specified. Force Majeure This is a standard clause but can be strengthened by adding a clause about fluctuating market conditions, including the sudden financial crisis, pandemic conditions, etc. Dispute

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Debentures under Companies Act, 2013

Companies Act 2013 / CA Bhuvnesh Goyal / June 20, 2024

Securities are issued by companies to acquire capital from investors. A security is a negotiable instrument issued by a company or a government which has a certain monetary value to acquire capital from the persons who invest in it. There are three types of securities in company law – a) equity securities which give the equity share value as a security to the person who is investing; b) derivatives securities which give value through another financial instrument or promise or contract and, c) the debt securities which gives the creditor a value through an instrument which comes with a charge on the assets provided as a collateral or security. Meaning of debentures according to Companies Act, 2013 A debenture is a type of debt instrument which is issued by a company to raise capital. Debenture is a long-term debt instrument which may be in the form of a bond or a loan which is secured by the charge upon the assets which have been provided as securities. Debentures have a fixed rate of interest and other characteristics which are described in detail later in the article. According to Section 2(30) of the Companies Act, 2013 – the term “debenture” includes debenture stock, bonds, or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not. The definition in the Companies Act, 2013 does not mandate the creation of a charge. So, a debenture can be issued without creating a charge on the company’s assets. For example, unsecured debentures are issued without creating a charge, where the company is not required to provide any property or asset as a security for the debt amount acquired by issuing the debentures. Types of debentures Debentures based on security Debentures based on tenure Debentures based on conversion Debentures based on registration Debenture based on security- Usually, the debenture-holder has less or no risk for the amount he has lent to the company to get the debentures since he has securities to charge, upon the default of payment by the company. The debentures based on security are of two types – secured and unsecured debentures. Secured debentures- Secured debentures are also known as mortgage debentures. They are a type of debenture that are secured by a charge either fixed, or floating, on a company’s assets. The holder of this type of debenture has the right to recover the principal amount and the interest from the assets which have been given as securities. Unsecured debentures- In this type of debenture, the companies are not required to pledge any of their properties or assets as collateral for the debt amount. Since the unsecured debentures do not require any assets to be used as a security, the lender usually is at high risk of losing his principal amount in case the company defaults. This type of debenture has a high rate of interest. Debentures based on tenure- Redemption of the debenture occurs when on the maturity date, the company pays back the principal amount along with the interest and releases its properties or assets from the charge given to the debenture-holder. It is divided into two types – redeemable and irredeemable debentures. Redeemable debentures- Most of the debentures are redeemable, meaning on the expiry of the maturity date, the debenture is redeemed by the company by paying back the principal amount with interest to the debenture-holder and releasing its assets from charge. Perpetual or Irredeemable debentures- If a debenture does not contain any clause as to the payment of the principal amount by the company and redeeming the debenture, then it is known as a perpetual or irredeemable debenture. This type of debentures, unlike redeemable debentures, does not cease on the maturity date. Debentures based on conversion- The company has the right to convert the debentures into equity shares. There are two types of conversion of debentures – convertible and non-convertible debentures. Convertible debentures- The company issuing debentures has the right to convert these types of debentures into equity shares. So the debenture-holder who was just a creditor to the company becomes a member of the company and enjoys ownership of the company to the extent to which he has the equity shares of the company. Non-convertible debentures- This type of debenture cannot be converted into equity shares of the company. So the debentures will always be redeemed and will never have the characteristics of equity shares of the company. Debentures based on registration- As most of the important deeds and instruments of a company are usually registered in the company, debentures are no exception. There are two types – registered and unregistered debentures. Registered debentures- If debentures are issued by the company, the company is required to maintain a register of its debenture-holders as Section 88 of the Companies Act, 2013 provides that every company shall register the holders of its debentures. Both, the debenture certificate and the company’s register, shall have the name of the debenture holder. Unregistered or Bearer debentures The company can avoid the registration of the debenture-holders if it issues the debentures to the bearer. Such types of debentures are transferable, like negotiable instruments, by way of simple delivery and are also called debentures payable to the bearer. Why are debentures issued Retained Earnings – a leftover profit after paying all the direct and indirect costs, all the interests to the lenders and the payment of dividends to the shareholders. The retained earnings of the company are used for further investment in the company. Equity Capital – It is a source of capital generated by giving out the equity of a certain part of ownership to the person who invests in the company. For example, shares. Debt Capital – It is a source of capital generated through debt which is lent by banks and other lenders who get a fixed rate of interest. For example, loans and debentures. Advantages of debentures Advantages of debentures to the company Secure way of raising money: Debentures are one of the most effective

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Form 60

Income Tax / CA Bhuvnesh Goyal / June 20, 2024

Individuals who engage in a certain transaction listed in Rule 114B of the Income-tax Rules, 1962 but do not possess a PAN are required to file Form 60 as a declaration. Form 60 is a declaration form used in India for individuals who do not have a Permanent Account Number (PAN) but need to carry out certain financial transactions. It serves as an alternative to providing a PAN when conducting specific transactions or opening certain accounts. It’s important to note that while Form 60 income tax allows individuals to carry out financial transactions without a PAN, it does not exempt them from tax liabilities. The individual is still responsible for fulfilling their tax obligations. What is Form 60? Form 60 is the declaration that is required to be filed by an individual or a person (except companies and firms) who does not have a permanent account no. (PAN) while entering into some specified transactions as per Rule 114B of the Income Tax Rules, 1962. If your total income (other than agriculture) is more than the basic exemption limit, then in such cases, form 60 format is not acceptable. In such a case, you can use Form 60 only if you have already applied for PAN, and you must also mention the date of application in column 21 of the form. When is Form 60 of Income Tax Required? When you decide to enter into any transaction with a banking institution or deal in some sort of asset, a PAN card is the basic identity proof required. But, there are still several people who do not possess PAN, or they might have already applied for PAN and are waiting for an allotment. Form 60 can be used in many cases instead of furnishing PAN by such people. Other than tax authorities, PAN or Form 60 PAN card, is required for a variety of transactions such as Nature of Transaction, Value of Transaction Sale or purchase of Motor Vehicle [other than two-wheeled vehicles], Irrespective of value / Any Value Opening a Bank account(other than basic savings deposit account) Irrespective of value Getting new Debit or Credit card Irrespective of value Opening DEMAT account Irrespective of value Payment to hotel or restaurant at one time Cash payment exceeding Rs 50,000 Travelling expenses to a foreign country or buying foreign currency at one time Cash payment exceeding Rs 50,000 Buying Mutual funds Amount exceeding Rs 50,000 Acquiring bonds or debentures Amount exceeding Rs 50,000 Acquiring bonds issued by RBI Amount exceeding Rs 50,000 Depositing money with(a) Bank(b) Post Office Cash exceeding Rs 50,000 in one day Purchasing Bank Draft/ pay order/ banker’s cheque Cash exceeding Rs 50,000 in one day Time deposit (FD) with(a) Bank(b) Post Office(c) NBFC(d) Nidhi company Exceeding Rs 50,000 at a time or Rs 5,00,000 in a financial year Life Insurance Premium If the amount exceeds Rs 50,000 in an FY Trading in securities Amount Exceeding Rs 1,00,000 per transaction Trading in shares of unlisted company Amount Exceeding Rs 1,00,000 per transaction Sale or purchase of any immovable property If the amount or registered value is Rs 10,00,000 or more Buying and selling of goods and services Exceeding Rs 2,00,000 per transaction How to Download Form 60 PDF? Step 1 – Visit the official website of the Income Tax Department Step 2 – Click on ”Forms/Download” on the top navigation menu Step 3 – In the drop-down menu, select ”Income Tax Forms” Step 4 – You will be redirected to a page with a list of different forms for income tax Step 5 – Scroll down the list until you reach “Form No.60.” Step 6 – Select the document, and it will get automatically downloaded to your system. Information Required to Fill Form 60 Your complete name Date of Birth Full address Telephone Number / Mobile Number Amount of Transaction Date of transaction Mode of transaction Aadhaar number If PAN is applied, then the application and acknowledgment number Disclosures of income Sign and mention the date and place. Documents Required to Submit with Form 60 Aadhaar Card Driving license Bank Pass Book (having photograph) Elector’s Photo ID Ration Card Passport Pensioner Photo card Proof of address Telephone bill and electricity bill copies Communication or document issued by Central or State Government or local bodies Domicile Certificate Kisan passbook Arm’s License etc How to Submit PAN Form 60? The online procedure to file Form 60 with the Income Tax Department shall follow as under The electronic verification can be done through this website- https://report.insight.gov.in/reporting-webapp/portal/homePage It can also be done using certain Aadhaar specified Authentications: Through OTP on your Aadhaar-linked mobile number or mail ID. Through Biometric modalities, i.e., either through iris (scanning your eye) or fingerprint. Two-way authentication, i.e., OTP + biometric modalities Or Use of OTP & fingerprint & iris altogether. What Should be Done if a Minor is Entering into a Transaction that Requires a PAN? Rule 114B of the Income Tax Act 1961 expressly provides that if a minor enters into any of the above-specified transactions and he does not have income chargeable to tax, then the Minor can quote the PAN of his Father, Mother, or Guardian while entering into such contracts. Whether NRI Needs to Submit Form 60? As per Rule 114B, Non Residents are required to quote PAN or file Form 60 only for a limited number of transactions, which are as under: Nature of Transaction Value of Transaction Sale or purchase of Motor Vehicle Irrespective of value / Any Value Opening a Bank account Irrespective of value Opening DEMAT account Irrespective of value Buying Mutual funds Amount exceeding Rs 50,000 Buying bonds or debentures Amount exceeding Rs 50,000 Depositing money with(a) Bank(b) Post Office Cash exceeding Rs 50,000 in one day Time deposit (FD) with(a) Bank(b) Post Office(c) NBFC(d) Nidhi company Exceeding Rs 50,000 at a time or Rs 5,00,000 in a financial year Life Insurance Premium If amount exceeds Rs 50,000 in a FY Trading in securities Amount Exceeding Rs 1,00,000 per transaction Trading in shares of unlisted company Amount Exceeding Rs 1,00,000 per transaction

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West Bengal Digital Ration Card

learn / CA Bhuvnesh Goyal / June 20, 2024

Residents of West Bengal who belong to the Below Poverty Line (BPL) group or are just above the Above Poverty Line (APL) can apply for a ration card so that they can purchase food item at subsidised rates. Apart from that, the ration card can also act as a legitimate government document. West Bengal Digital Ration Card-wbpds.wb.gov.in The Indian state of West Bengal has introduced a digital ration card, making it easily accessible to all residents in a digital format. Implementing West Bengal Digital Ration Card provides many benefits, including eliminating the need to carry a physical ration card and the convenience of presenting the digital version at any time. This move towards digitalization is a positive step for India, and the digital ration card is a significant aspect of this shift. Ration Card Status Check Online West Bengal. Which details are mentioned on the West Bengal Ration Card Names of family members: The name and details of the head of the family, along with details of all family members and their relationship to the head of the family, are generally listed on the ration card. Card Type: The type of ration card, such as Antyodaya Anna Yojana (AAY), Below Poverty Line (BPL), or Above Poverty Line (APL), is specified on the card. Address: The residential address of the cardholder’s family is mentioned on the ration card. It helps in determining the locality and jurisdiction for distributing subsidised food items. Card Number: Each ration card is assigned a unique identification number, known as the ration card number. This number is used for tracking and identification purposes. Date of Birth: The date of birth of the family head and rest of the family members may be present on the ration card. Father’s/Husband’s Name: The name of the father or husband of the family head is also mentioned on the ration card. Card Issuing Authority: Information related to the authority or department issuing ration cards is also provided. Bar Code or QR Code: Some states provide ration cards with a bar code or QR code for easy digital verification process. e-Ration card in West Bengal To digitise and streamline the distribution of food and essential commodities, West Bengal has introduced the concept of the E-Ration Card. This initiative aims to replace traditional, paper-based ration cards with electronic versions, offering numerous benefits to the residents of the state. WB Digital Ration Card – Eligibility Criteria Legal and permanent resident of West Bengal State Must not possess a ration card If the applicant has applied for a temporary ration card that has expired, they can apply for a new ration card under the scheme Newlyweds are eligible to apply for new ration cards under the scheme. Application Process for E-Ration Card in West Bengal Step 1: Applicants can visit the official website designated for E-Ration Card applications in West Bengal. Step 2: Fill out the online application form with accurate details, ensuring all required information is provided. Step 3: Upload the necessary documents, such as proof of residence, identification, and income, as specified in the application guidelines. Step 4: The submitted information undergoes a verification process, and applicants may be required to visit designated centers for biometric verification. Step 5: Once the verification is successful, applicants receive their E-Ration Cards digitally. The card can be downloaded and stored on mobile devices for easy access. Documents required to apply for West Bengal Ration Card Proof of address Proof of identity Proof of income Proof of having a valid mobile number Aadhaar Card Voter ID/EPIC Email ID Proof of your age Old ration card only if available How to apply for West Bengal Ration Card? Online Given below are the steps you will have to follow if you wish to apply for a West Bengal Ration Card: Visit the official website of West Bengal Department of Food and Supplies https://wbpds.gov.in/home/login As you scroll down you will find the link ‘Application Form for Non-Subsidised Ration Card or Conversion to Non-Subsidised Ration Card’. Click on it. A new page will open where you will have to enter your 10-digits mobile number. A one-time password (OTP) will be sent to your registered mobile number. Enter the OTP and click on ‘VALIDATE‘. After you have validated your mobile number, your next step will be to choose one of the options if you are an existing ration card holder – AAY, PHH, SPHH, RKSY-I, or RKSY-II Card. If you are applying for a ration card for the first time, then you will not be required to choose any of the options given above. If you are an exisiting customer, choose one of the options – AAY, PHH, SPHH, RKSY-I, or RKSY-II Card if you wish to convert your existing digital card to non-subsidised ration card. In the next step, enter the district, block/municipality, gram panchayat, post office, police station, flat number, street lane, PIN Code, email ID, and your ration card number. Click on ‘DISPLAY’ to view the information. Details of your family members will be displayed on the screen. You can then select all the card members or partially select the card members for conversion to non-subsidised ration card and then click on ‘View Selected List’. You will then have to enter details such as date of birth, Aadhaar number, EPIC number (only if available), and PAN Number of the selected ration card and then click on ‘Save and View‘. You will then have to verify all the details provided by you and check the declaration form. Do the summation and click on the ‘Submit’ button. Your application form will be submitted successfully for which you will receive a confirmation message on your computer screen. If you are a new applicant, then you will have to choose the option ‘New Applicant -Don’t have a ration card’ option on the screen. Enter the district, block/municipality, gram panchayat, post office, police station, flat number, street lane, PIN Code, email ID, and paper category, and select the Fair Price Shop/ Ration Dealer information. You will then have to enter your personal details such as your date of birth, Aadhaar number, EPIC number (only if available),

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Bangalore Property Tax

learn / CA Bhuvnesh Goyal / June 20, 2024

Individuals who own a property in Bengaluru must pay the property tax every year to the Bruhat Bengaluru Mahanagara Palike (BBMP). The tax is used to fund the maintenance of public parks, drainages, roads, and other infrastructure in the state. Property tax must be paid on an annual basis and the Unit Area Volume (UAV) system is used by BBMP to calculate property tax. The location of the property along with the nature of its usage and the anticipated returns from it will determine its UAV.Property taxes are considered to be one of the most vital sources of revenue for the Government. The property tax collected by corporation and municipalities across the country is used to render various amenities to the residents. Property tax is imposed by the State Government on the owners of a property on a year-on-year basis. BBMP Property Tax Payment BBMP property tax payment must be done every year. The tax period commences in April and ends in March of the following year. For instance, if you have property tax due for FY 2024-25, you must ensure that it can be filed before 31st March 2025. Owners of properties in Bengaluru are liable to pay property tax to the Bengaluru Municipality body called Bruhat Bengaluru Mahanagara Palike (BBMP) every year. The municipal body utilises these funds to provide civic facilities in Bengaluru. The BBMP follows the Unit Area Value (UAV) system for calculating the amount of property tax. The UAV is based on expected returns from the property, depending upon its location and the nature of the usage of the property. The computation of property tax is done based on the per sq. ft. per month (UNIT) that is fixed based on the location of the property (AREA) and multiplied by the current property tax rate (VALUE). The jurisdiction of the BBMP is divided into six value zones based on the guidance value published by the Department of Stamps and Registration. The property tax rate will differ according to the zone in which the property is located. Property Tax Rate in Bangalore Zone Tenanted (per sq. ft.) Self-occupied (per sq. ft.) A Rs.5 Rs.2.50 B Rs.4 Rs.2 C Rs.3.60 Rs.1.80 D Rs.3.20 Rs.1.60 E Rs.2.40 Rs.1.20 F Rs.2 Rs.1 How to Pay BBMP Property Tax Online? Step 1: Visit the BBMP property tax portal at https://bbmptax.karnataka.gov.in/ Step 2: Enter the Application Number, PID Number, or Renewal Application Number and Owner Name. Step 3: Click on ‘Retrieve’. Details of the owner will be displayed on the next page. Step 4: Hit ‘Proceed‘ in case the details displayed on the screen are correct and require no changes. Doing so will redirect you to fill Form IV. Step 5: In case any changes need to be made to the property, like property usage, occupancy, or built-up area, click on the box on the screen and hit ‘Proceed‘. Doing so will take you to fill Form 5 Step 6: Make sure that the information that has been pre-filled is accurate. You can then proceed to make the tax payment which can be done either in instalments or in full either through a challan or online. Step 7: In case you select the online payment option, you will be redirected to the payment page where you will have to select the mode of payment, viz. debit card /credit card or net banking. Step 8: After you have successfully made the payment, the system will generate a receipt number which can be viewed, printed or downloaded after 24 hours. Computation of Property Tax Property tax (K) = (G – I)*20% + Cess (24% of property tax) Where G = Gross unit area value arrived by X+Y+Z and I = G*H/100X = Tenanted area of property x Per sq. ft. rate of property x 10 months Y = Self-occupied area of property x Per sq. ft. rate of property x 10 months Z = Vehicle parking area x Per sq. ft. rate of vehicle parking area x 10 monthsH = Percentage of depreciation rate, which depends upon the age of the property Hence, property tax is equal to 20% of the total area of the property (tenanted, self-occupied, and vehicle parking area) multiplied by per sq. ft. rate fixed by BBMP for each kind of usage of property for 10 months reduced by depreciation allowed by BBMP plus 24% cess on property tax. BMP Property Tax Forms BBMP Property Tax Forms Description Form I Must be used when the owner of the property has the Property Identification Number (PID), which is a distinctive ID assigned to every property. It contains important details regarding the street, ward as well as the plot on which the property rests. Form II Must be used when the property owner does not have the Property Identification Number but has a khatha number instead. This number is basically the number of a khatha certificate which is issued for every property. The certificate has all the information regarding the property. Form III Must be used when the owner has neither the Property Identification Number nor the khatha number. Form IV It is a white form that must be used in case there are no changes or alterations in the property details. Form V It is a blue form and it must be used in case there are changes or alterations made to the property. For instance, if a new floor has been added to the house, or the property has been demolished and changed to ‘non-residential’ from ‘residential’. Form VI Must be used when the property under assessment is exempt from property tax. FAQs Is there any limit for the amount to be claimed as property tax? No, there is no limit as to the amount of property tax to be claimed as a deduction. Can I claim the property tax paid on the self-occupied property? No, the property tax paid on the self-occupied property cannot be claimed as a deduction from house property income. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return

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PRAN Application

Government Schemes / CA Bhuvnesh Goyal / June 20, 2024

In 2004, the Government of India launched the National Pension System (NPS). Under this pension scheme, working individuals can create a retirement corpus by making yearly deposits in their working years. Initially, this scheme was explicit to government employees, but later it was opened to employees from every sector in the economy. Through the National Pension System, individuals can make yearly deposits in a profitable avenue that would yield market-linked returns. Such returns would accumulate into a substantial corpus that individuals can utilise to support their post-retirement life. For subscribing to NPS, individuals need to possess a Permanent Retirement Account against which they are allotted a Permanent Retirement Account Number card or PRAN card. What is PRAN? The full form of PRAN is Permanent Retirement Account Number and it is a unique 12-digit number that identifies those individuals who have registered themselves under the National Pension Scheme (NPS). PRAN card registration is mandatory for Central and State Government employees and can be done with National Securities Depository Limited (NSDL). There are 2 types of NPS accounts held under PRAN: Tier-I: This account is non-withdrawable and is meant for retirement savings Tier-II: It is similar to a savings account and allows you to withdraw your savings. However, it does not offer tax benefits. Furthermore, every NPS subscriber must mandatorily hold a PRAN. They can also optionally hold a PRAN card, i.e. the physical copy of PRAN. Under a Permanent Retirement Account, a subscriber can hold two types of accounts – Tier I and Tier II. The former account type is mandatory under NPS. A subscriber needs to make their yearly contributions for retirement funds in this account. Therefore, an individual cannot withdraw the sum from their Tier-I account before retirement. The latter account type is a voluntary savings account. Therefore, an account holder can withdraw from it anytime they want. Furthermore, it does not enjoy any tax benefits; whereas the balance in a Tier-I account is subject to a tax deduction. How to Apply for a PRAN? Offline method- In the offline method, individuals need to visit a PoP or Point of Presence empanelled under the National Pension System (NPS). There they need to fill out the PRAN card application form that is the NPS Application Form Annexure S1. The contents of the PRAN card application form are – Applicant’s personal details Applicant’s employment details Applicant’s nomination details Details of the scheme Subscriber’s declaration to the Pension Regulatory Fund and Development Authority (PRFDA) After filling out the PRAN application form, the applicant needs to submit it to the concerned official. Online method- An NPS subscriber can open a Permanent Retirement Account online by visiting the National Securities Depository Limited’s (NSDL) official website. It is the NPS-registered Central Record-keeping Agency (CRA) and acts as the portal for all NPS-related activities. Individuals can apply for NSDL PRAN using either their PAN or Aadhaar number. Both the methods are enumerated below. 1. PRAN application using PAN An applicant must keep the following points in mind when applying for a PRAN card via PAN – For application via PAN, an applicant needs to have a bank account with an empanelled Bank for KYC verification. The bank that such an applicant chooses during the registration process will conduct the KYC verification. Applicants should also note that the name and address they provide during registration shall match the respective bank’s records. Applicants need to fill up all the mandatory details online. Applicants must upload scanned copies of PAN card and a cancelled cheque. Applicants need to upload their signature and photograph by scanning it. Following that, applicants will be redirected to a payment portal for payment towards their National Pension System account. They have the option to Print and Courier the registration form to CRA or eSign it. Additionally, the contributions made in PRA are credited in T+2 days, i.e. two days from the date of payment. 2. PRAN application using Aadhaar card Under this method, the KYC verification is done via an OTP. This OTP is sent to the mobile number that is registered and recorded in the Aadhaar database. Following confirmation, all applicant details recorded in the Aadhaar database are auto-populated in the online form. An applicant needs to fill the other details in that application form and then upload his/her scanned signature. After that, such an applicant would be routed to the payment portal to conclude the application process. Documents Required for PRAN Card Application PAN Aadhaar card Scanned copy of a cancelled cheque Scanned signature Scanned photograph Scanned passport – it is mandatory for NRI applicants Activation of PRAN Card The most straightforward way to activate a PRAN card is by electronically signing that document via the “eSign” option. In case an applicant has applied for a PRAN card through Aadhaar number then they can activate their PRAN card via the following steps – Choose the “eSign” option from the “eSign / Print and Courier” page. An OTP will be sent to such an applicant’s Aadhaar-registered mobile number for PRAN card activation. Such an applicant needs to populate the field with that OTP. After OTP verification, the applicant’s PRAN card will be activated, and he/she will receive a confirmation regarding the same. The activation process might incur a nominal charge. How to Track the Status of PRAN Card Dispatch? Usually, concerned authorities dispatch a PRAN card to the respective nodal office within 20 days from the date of receipt of the duly filled registration form by a CRA-FC office. Therefore, an applicant can contact their respective nodal office concerning their PRAN card status. Alternatively, they can also track their PRAN card’s status online. For that, they need to visit the NPS-NSDL portal by searching “Track the status of PRAN Card”. Upon visiting the website, they need to enter their PRAN and the captcha and click “Submit”. Thereby, the applicant can view the status of their PRAN card. FAQs Is it mandatory to have a PRAN card? Yes, all NPS subscribers must have a NPS PRAN card. Can I have

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