UPDATES

CBDT

The Finance Act, 2016 has amended the definition of “Distributed Income”, with effect from 01.06.2016, to mean the consideration paid by the Company on buy back of shares as reduced by the amount, which was received by the Company for issue of such shares, determined in the manner as may be prescribed. In this regard, draft rules providing for determination of amount received by Company for use of its shares under different circumstances have been formulated and uploaded on the Ministry’s website (www.finmin.nic.in) and website of the Income-tax Department (www.incometaxindia.gov.in) for comments from stakeholders and general public.

The Central Board of Direct Taxes has invited Comments/ Suggestions on draft rules. Further, Comments/ suggestions may be sent by 31st July, 2016 electronically at the email address, ustpl1@nic.in.

CBDT:

The Central Board of Direct Taxes has introduced Digital Signature Certificate (DSC) based application procedure for allotment of PAN and TAN to corporate. Under the new process PAN and TAN will be allotted within a day. This is aimed at ensuring ease of doing business.

Similarly, a new Aadhaar e-Signature based application process for Individual PAN applicants has been made available on the portals of PAN service providers M/s NSDL eGov. Introduction of Aadhaar based e-Signature through M/s NSDL eGov in PAN application not only ensures paperless hassle free PAN application process but also seeding of Aadhaar in PAN which will curb the problem of duplicate PAN to a great extent.