No need to apply, you will get eversion of PAN in mail ID PAN 2.0

No need to apply, you will get eversion of PAN in mail ID PAN 2.0 

TIMES NEWS NETWORK 27.11.2024

New Delhi : Your existing PAN card will remain valid under PAN 2.0 project and you will automatically receive an electronic version of the card in your mail ID, without having to apply for it. Those seeking a physical card, however, will have to apply and pay Rs 50 for it if they live within the country, the tax department said on Tuesday.

 “If existing PAN holders want to make any correction/updation of their existing PAN details such as email, mobile or address or demographic details such as name, date of birth etc, they can do so at free of cost after the PAN 2.0 Project commences. Till the time the PAN 2.0 project is rolledout, the PAN holders can avail the Aadhaar based online facility for updation/correction of email, mobile and address free-of-cost,” the Central Board of Direct taxes said in a set of FAQs released a day after the cabinet committee on economic affairs (CCEA) cleared a Rs 1,400 crore project. 

The department also said QR codes will be part of the project, but the feature has already been rolled out, which helps in validating PAN and other details. The upgradation project will also see all PAN and TAN related services, currently hosted on three different portals (e-filing portal, UTIITSL and Protean e Gov), move to the income tax department portal and will provide end-toend services — from application to allotment, online validation, linking with Aadhaar and updation. The entire process will be paperless, CBDT said. In line with the Budget 2023 announcement, govt has decided to make PAN the “common business identifier” for all digital systems of specified govt agencies. Although it is illegal to have more than one PAN, there are several entities and individuals, who violate the law and govt is hoping that once the project is rolled out, it will be easier to check such instances. Currently there is a database of 78 crore PANs and 73.3 lakh TANs in the country.

Allowances you can claim under new tax regime to reduce your taxable income

 Allowances you can claim under new tax regime to reduce your taxable income

Under the new income tax regime in India, several tax-free allowances can be claimed to reduce your taxable income. Here's a breakdown of some key allowances:

Submitting Form 12BB to your employer on time can significantly reduce TDS for the majority of the year. Photo: Shutterstock

Sunainaa ChadhaNEW DELHI

3 min read Last Updated : Mar 19 2024 | 11:02 AM IST

The government introduced the new tax regime to streamline the process of filing taxes, aiming to make it more straightforward for taxpayers. The main goal was to simplify the tax filing experience by eliminating the need for taxpayers to navigate through numerous deductions and exemptions to decrease their taxable income. Instead, the focus shifted to offering reduced tax rates. In this overhaul, deductions for expenses such as rent, travel, medical, certain allowances, and interest on loans for self-occupied properties were scaled back. Nonetheless, even under this new system, taxpayers have the ability to claim certain exemptions:
 Here's a breakdown of some key allowances as per Shilpi Jain, Partner, Ved Jain and Associates*

Standard Deduction: This replaces several deductions previously available under the old regime. In the new regime, a standard deduction of Rs. 50,000 is offered to all taxpayers, regardless of their income level.

Retirement Benefits: Both gratuity and leave encashment received upon retirement remain non-taxable.

Employer Contributions to NPS/PF: Contributions made by the employer towards NPS (National Pension System) or PF (Provident Fund) are not taxed under the new regime. While the old regime allowed tax exemptions on employee contributions under Section 80C, these are not deductible under the new system.

 Long-Term Capital Gains (LTCG): Taxpayers can still avail themselves of the deduction on long-term capital gains from the sale of equity shares or equity-oriented mutual funds, up to a limit of Rs 1 lakh, under the new regime.

Jain explains this with the following example:

Annual Salary: Rs 8,00,000
Employer's Contribution to NPS: Rs 40,000
Gratuity Received on Retirement: Rs 2,00,000
Leave Encashment on Retirement:Rs 1,50,000
Long-Term Capital Gains from Equity Shares: Rs 1,20,000
Total Income earned : Rs 13,10,000
Deductions from this income
Standard Deduction : Rs 50,000
Gratuity : Rs 2,00,000
Leave Encashment: Rs 1,50,000
LTCG : Rs 1,00,000
Employer's contribution to NPS : Rs 40,000
Total deductions : Rs 5,40,000
Net Taxable Income : Rs 7,70,000
Under New tax regime, you can also claim tax exemption for the following, as per ClearTax:

Transport allowances in case of a specially-abled person.
Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment.
Any compensation received to meet the cost of travel on tour or transfer.
Daily allowance received to meet the ordinary regular charges or expenditure you incur on account of absence from his regular place of duty.
Perquisites for official purposes
Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA)
Interest on Home Loan on let-out property (Section 24)
Gifts up to Rs 50,000
Deduction for additional employee cost (Section 80JJA)