Consumer Rights Archives -

When is It Compulsory To Sow Your PAN Card?

Fri, 14 Oct 2022 04:45:17 +0000

The Buyt Desk

In India, PAN is mandatory to carry out many financial transactions. All know it is a must to have PAN to file income tax returns, but many more activities demand PAN.

In India, the Income Tax department issues Permanent Account Number (PAN) cards through the UTI or NSDL. It remains valid for one’s lifetime even if there is a change of address several times. The PAN helps the government keep track of tax evasion and black money as the taxman should quote the PAN card number for carrying out several financial transactions. A person not holding a PAN card needs to sign Form 60 declaration of ITR or submit an Aadhaar card number in place of PAN.

What is PAN?

A Permanent Account Number is known as PAN which is a 10-digit alphanumeric number. PAN is issued by the Income Tax Department to an Indian tax-paying citizen. PAN makes it possible for the department to link all financial transactions of an individual including tax payments, TDS/ TCS credits, returns of income/ wealth/ gift/ FBT, and many more with the department. This is the reason PAN is considered an identifier for the citizen with the tax department.

What are the cases where producing a PAN card is a must?

Below are a few cases where a PAN card is a must –

While buying or selling a motor vehicle
While opening a bank account
When applying for a credit/debit card
While opening a Demat account
When payment is made in cash to a hotel or restaurant against a bill at any one time and the amount exceeds Rs 50000/-
When payment is made in cash in connection with travel to any foreign country against a bill at any one time and the amount exceeds Rs 50000/-
When payment is made in cash for the purchase of any foreign currency against a bill at any one time and the amount exceeds Rs 50000/-
While buying mutual funds, bonds, debentures, etc worth more than Rs 50000/-
While depositing cash in a bank of over Rs 50000/- in a day
While the payment of over Rs 50000/- is made in cash during a day for purchasing banker’s cheques or bank drafts or pay orders from a bank or a cooperative bank
When a fixed deposit exceeds Rs 50000/- in one go or during a financial year aggregates to more than Rs 5 lakh
When the payment of more than Rs 50000/- is made in a financial year to pre-paid payment instruments
When a life insurance premium payment of more than Rs 50000/- is made in a financial year
While buying or selling securities, other than shares exceeding Rs 1 lakh per transaction
While buying or selling of shares of a company (not listed in a recognized stock exchange) exceeds Rs 1 lakh per transaction
While buying or selling of any immovable property exceeds Rs 10 lakh or valued by stamp valuation authority referred to in section 50C of the Act exceeds Rs 10 lakh
While buying or selling goods or services of any nature other than those specified above exceeds Rs 2 lakh per transaction

Why is it mandatory to have PAN?

According to the Income Tax department, in India, PAN is mandatory for

every citizen whose total income exceeds the non-taxable income limit
every citizen whose total income of any other person in respect of which he/ she is assessable during the previous year exceeds the non-taxable income limit
a charitable trust who have to provide a return under Section 139(4A)
every individual who is carrying on any business or profession and the total sale, turnover, or gross receipts are or is likely to exceed Rs 5 lakh in any previous year
every individual who wants to do specified financial transactions in which quoting of PAN is mandatory
every non-individual resident person and person associated with them, when the financial transaction entered into during a financial year exceeds Rs 2.5 lakh

The income tax authority has made it mandatory to quote PAN on the return of Income and all corresponding transactions with it. It is also compulsory to produce PAN for various financial transactions including the sale or purchase of any immovable property exceeding Rs. 5 lakh, the sale or purchase of a vehicle, or any time deposit beyond Rs 50000/-, with a bank or Post Office. It is also mandatory to quote PAN for any contract whose value exceeds Rs. 1 lakh for the sale or purchase of securities, making an application for the installation of a telephone connection, opening a bank account, payment to hotels and restaurants exceeding Rs 50000/- at one go. Even for payments made in cash for the purchase of bank drafts or pay orders or banker’s cheques exceeding Rs 50000/- during any one day, deposit in cash with a bank exceeding Rs 50000/- during any one day, payment in cash corresponding to travel to any foreign country of an amount exceeding Rs 50000/- at any one time need to quote PAN card.

What are exceptional cases of the PAN rule?

Minors can quote the PAN card number of a parent or guardian only when the minor does not have any taxable income
When an individual has no PAN, Income Tax department rules allow them to carry out any of the transactions where PAN is mandatory, by signing a Form 60 declaration which states that they do not hold a PAN card and their income is below the taxable limit
As per rule 114B, the central government, state governments, and the consular offices need not mention PAN card numbers
In some cases, NRIs get relaxation by quoting PAN

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Digital Lenders Cannot Bully for Recovery

Mon, 05 Sep 2022 03:28:46 +0000

The Buyt Desk

Delay in loan repayment cannot end up in humiliation. Fintech platforms that are happily doling out loans with offers like no paperwork, no CIBIL, and loans in minutes turn into loan sharks if there is even a single-day delay of repayment by the borrower. They resort to aggressive methods to threaten and blackmail the borrowers. This behaviour is rising since the COVID pandemic, especially by fintech lenders. Fintech is a financial technology that is online and fintech lenders are app-based lending platforms run by either banks or a non-banking financial company (NBFC).

Humiliation by Fintech lenders

Fintech lenders are threatening borrowers with police complaints and issuing legal notices. They humiliate small borrowers who have borrowed as small amount as Rs 10000. During the pandemic, many could not continue paying EMIs. Even the Reserve Bank of India (RBI) had announced a loan moratorium for 6 months during the pandemic. But many Fintech lenders did not consider the loan moratorium and recovery agents threatened borrowers through messages and calls. They not just rejected the request for a moratorium but charged a 1% penalty on the loan amount per day from the due date.

Borrower’s despair

We can see so many stories and reviews on social media that talks about the borrower’s despair. Fintech lenders are charging steep interest rates on the loan amount and charging heavy penalties for delays in the repayment of loans. There have been instances when the borrower’s relatives, neighbours or bosses were called for the recovery of the loan. These apps take permission to access the phone when installing the app. So they have access to the contact list and photo gallery of the phone.

How are Payday loans blown up?

Payday loans are small loans disbursed by mobile apps or online websites and loan amounts can be anything from Rs 1000 to Rs 3 lakh. Usually, salaried people in the age group of 21-35 are the ones who opt for a payday loan. Borrowers can go for payday to pay school fees for their children, medical emergencies or any personal expenses. Even a self-employed borrowers can go for payday loans to meet their business needs. They can borrow for 7 days to 3 months or even for a year. A payday loan is an expensive loan as the interest rates can be anywhere between 25% to 40% a year plus the processing fee is 15 to 20 % and 18 % goods and service tax (GST). And if the borrower delays the EMI then there is a huge penalty to be paid. Though these are expensive loans, these have increased many folds in the last 2 years. Borrowers have increased so are digital lenders and recovery agents.

Digital lenders have a new code of conduct

The Digital Lenders’ Association of India (DLAI) has thrown some light on ethical practices for all its members and has issued a fresh code of conduct. These guidelines indicate lenders to avoid exorbitantly high and non-transparent late payment fees and ask for transparency in pricing. Also asks lenders to fix the late payment fees at the time of giving out the loan and keep the borrower informed about the same. Lenders are asked to not call any family members of borrowers to threaten or harass them.

What are the rights of borrowers?

Borrowers have a right to know about the collection agent. They have the right to privacy and can opt to not discuss their other debts. They have a right to be treated fairly and with dignity. They can file a complaint with the financial institution in case of a grievance. They have the right to take legal action against the lender and file a complaint at the police station in case of harassment. The borrowers can be contacted only from 7 am to 7 pm.

What do lenders do if the borrower defaults?

Lenders can provide a loan moratorium or ask the borrower to restructure the loan so that the borrower will have the flexibility and a simple option to repay the loan. One-time settlement of loan is also an option when the lender offers to waive off interest and penalty charges. In any case, the credit score of the borrower will be affected.

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Shopping Site Delivered a Wrong Product? This is What You Should Do

Thu, 14 Jan 2021 08:04:15 +0000

The Buyt Desk

You have purchased an expensive jacket online. After waiting for five days finally, the package arrives. You excitedly received the order but did not open it immediately. You keep the box aside for a day to negate any COVID infection risk. On opening the package on the sixth day, you find out that the seller sent you the wrong product. You ordered a red jacket, but a black jacket was delivered to you. Now, what do you do?

You have a right to return the wrong product. You can request the seller for a return/exchange of the product and avail refund. In case the seller refuses then you use the remedies under the Consumer Protection Act, 2019. Ensure that you must always preserve the receipt of the purchased goods with you. The receipt, issued by the seller, serves as the guarantee of the quality of the product. It makes the seller liable to refund the product’s cost in case of a defect within 15 days of purchase.

What does the Consumer Protection Act 2019 offers a consumer?

Under the Consumer Protection Act, every consumer is entitled to six rights. The right are:

The right to safety
The right to be informed
The right to choose
The right to be heard
The right to redressal, and
The right to consumer education.

The Act safeguards the consumer against unfair and restrictive trade practices. It ensures that the consumer receives the full value as the seller promised him. If the seller sells a defective product, he needs to provide a resolution in repair, replacement, or refund. If the consumer does not receive a solution, he can file a complaint with the Consumer Forum. For consumers’ ease, the Act has set up consumer mediation cells, and fora at District, State, and National level. The District Commission can take up the matter of up to Rs.1 Crore. The State Commission takes up issues of up to Rs.10 Crores, and the pecuniary jurisdiction of National Commission is over and above Rs.10 Crores. A consumer can file a complaint from his choice of location and, not necessarily from the seller’s site.

What steps should a consumer follow if he is dissatisfied with a purchased product?

Send a legal notice to the seller claiming replacement, repair, or refund.
If the seller fails to acknowledge the legal notice within 30 days then file a complaint with Consumer Disputes Redressal Forum/ Commission at the earliest. The maximum time limit for filing a complaint is two years from the date the cause of action arose.
A pre-defined fee, via a demand draft or a postal order, should accompany the complaint.
You do not require a lawyer to draft the complaint. However, if you authorize someone else to file the complaint on your behalf, it should bear his signature. The complaint should mention the names and complete addresses of both the parties.
Attach the supporting documents with the complaint—for example, copies of the receipt, the legal notice, and warranty or guarantee documents. An affidavit, stating that all information/evidence is entirely true and correct, should accompany the complaint.
You should mention the amount of compensation sought under the claim.
Send the complaint via registered post and save the postal receipts for future references. You can even register the grievance with the online Integrated Grievance Redress Mechanism (INGRAM), established by the Department of Consumer Affairs.
If you are dissatisfied with the Consumer Forum order, then approach the Appellate Authority of that Forum within 30 days of the order.

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Digital Payment Disputes will be Settled Online

Sun, 03 Jan 2021 10:42:52 +0000

By The Buyt Desk

Whether we like it or not, the post-CoVID19 era has pushed us all towards digital transactions. There has been a significant rise in digital transactions. The nationwide lockdown nudged even those who were earlier hesitant to use online mode of transactions. According to a KPMG poll survey on the impact of COVID 19 on digital payments, most 81% respondent said they chose digital payment over cash payment. If you would switch back to cash mode post-COVID, 65 % said unlikely as they find a digital payment to be more secure and safe.

The increased digital transaction also raised the number of complaints

But with rising online transaction, there has been a spike in the number of consumer grievances too. To resolve customer dispute, the Reserve Bank of India in Statement on Developmental and Regulatory Policies dated August 6, 2020 announced the Online Dispute Resolution (ODR) system for resolving customer disputes. The central bank has mandated banks and non-banks who are Payment System operators (PSOs) to bring forth a redressal framework to resolve consumer issues. The PSOs have to ensure that the customers can lodge an online complaint about failed transactions.

Online Dispute Resolution (ODR) to be implemented in phases

The PSOs have to roll out technology-driven redressal mechanisms that are rule-based, transparent and involve minimum (or no) manual intervention. The purpose of the ODR will be to deal with consumer disputes in a timely and effective manner. The authorized PSOs have to first implement the ODR systems for the failed transaction and then extend to other types of disputes and grievances.

Complaint Process through ODR

The ODR system will provide consumers with one or more ways to lodge their complaints – a web-based complaint form, IVR, a mobile app, SMS or a call center. The entire process should be comfortable with simple steps without causing any inconvenience to the customer. The ODR system should be able to collate the information automatically. Data confidentiality should be the topmost priority while designing the complaint system. Every consumer must be provided with a reference number by the ODR system so that he/she can track their complaint using this reference number. If the grievance remains unresolved up to one month, the customer may approach the respective ombudsman.

The idea behind the ODR system

The idea of ODR came from an RBI appointed committee. This committee was formed in 2019 headed by the non-executive chairman of Infosys, Nandan Nilekani. The committee gave lots of suggestion to make digital payments more accessible and easy to use. Nilekani Committee suggested elimination of many charges and making facility like RTGS round the clock. RBI has adhered to many of their recommendations, and now we do have a 24x7x365 RTGS system. It was this committee which suggested an online dispute resolution systems to handle complaints.

Any new company who sets up a payment system in India will have to put an ODR system in place as a prerequisite.

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4 Latest Consumer News – Need to Know

Thu, 08 Oct 2020 04:32:12 +0000

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फंस गए आप भी Moratorium ले कर?

Fri, 18 Sep 2020 13:28:04 +0000

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