Home » Income Tax » Amendment in section 139A of the IT Act relating to PAN?

pan


In Finance Bill 2018, following amendment is proposed relating to PAN is compulsory in certain cases:

Clause 42 of the Bill seeks to amend section 139A of the Income-tax Act relating to permanent account number.

Sub-section (1) of the said section, inter alia, provides that every person specified therein and who has not been allotted a permanent account number shall apply to the Assessing Officer for allotment of a permanent account number.

It is proposed to insert a new clause (v) in the said sub-section so as to provide that every person, not being an individual, which enters into a financial transaction of an amount aggregating to two lakh fifty thousand rupees or more in a financial year shall apply to the Assessing Officer for allotment of a permanent account number.

It is further proposed to insert a new clause (vi) so as to provide that the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the person referred to in clause (v), or any person competent to act on behalf of the person referred to in clause (v), shall also apply to the Assessing Officer for the allotment of permanent account number.

The amendment proposes a very onerous requirement to obtain PAN.

Suggestions:

a) The requirement of PAN should be restricted only to those persons who enter into a financial transaction on behalf of the entity.
b) The provision, though has come to widen the tax base and catch evaders who do not file any tax returns, should only cover entities that have a direct nexus to income, which is chargeable to tax in India.
c) PAN must also be restricted in its applicability to only those individuals in actual management of the entity in question.
d) In addition, financial transaction needs to be defined in the section.

Written by:
Amit Rustogi – CA



Print Friendly, PDF & Email

Students' Guide to Income Tax Including GST ( A.Y 2018-19 )

Rs. 744.99
Students' Guide to Income Tax Including GST ( A.Y 2018-19 )
6.7

Excellent product quality and delivery service

9.5 /10

Good book for for tax. specially for CA intermediate

6.0 /10

Awesome book

4.5 /10

Features

  • Taxmann; 58th Edition A.Y 2018-19 edition (2018)
  • Dr. V K Singhania & Dr. Monica Singhania
  • CA Inter (IPCC) May/Nov,2018
  • CS(EXE) June/December,2018
  • CMA June/December,2018
  • B.Com, M.Com,MBA and Other Professionals
  • Income Tax - Problems & Solutions
  • Inclues - GST

Leave a Reply

Your email address will not be published. Required fields are marked *

Name
Email
Website