Non-individuals conducting transaction over Rs 2.5 lakh must apply for PAN by May 31 of next FY
PrintListen to this Article
An amendment has been made in Rule 114 of the income tax rules. The amendment will come into effect from December 5, 2018.
Budget 2018 had amended Section 139A of the Income Tax Act making it mandatory for non-individuals who did not have a PAN but conducted a transaction of Rs 2.5 lakh or more in a single financial year to apply for PAN. This requirement came into effect from the current financial year i.e. FY 2018-19.
The Central Board of Direct Taxes (CBDT) has amended the rule 114(3) to notify the time period for applying for PAN as on or before May 31 of the following financial year."
This can be explained with an example below. Suppose a Hindu Undivided Family (HUF) is not required to file income tax returns (ITR) because the income is below the taxable limit and therefore does not have a PAN. However, during the financial year 2018-19, it enters into a transaction exceeding Rs 2.5 lakh. In that case, such an HUF has time till May 31, 2019 to apply for PAN.
The notification further specifies that in case of a individual, who is the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer or any person competent to act on behalf of the non-individual (who conducts the transaction of Rs 2.5 lakh or above) and has not been allotted any PAN, will also be required to apply for PAN on or before May 31 of the following financial year. #casansaar (Source - Economic Times)
Category : PAN | Comments : 0 | Hits : 879
A total of 11.5 crore PAN cards were deactivated for not being linked to Aadhaar cards before the stipulated deadline, a Right to Information (RTI) reply by the Central Board of Direct Taxes (CBDT) stated. The deadline for linking PAN with Aadhaar expired on June 30 earlier this year. There are 70.24 crore PAN card holders in India and among them, 57.25 crore have had their PAN cards linked with Aadhaar. The RTI reply further states that over 12 crore PAN cards have not been li...
Aadhaar linking with PAN can now be done till March 31, 2022, after the government extended the deadline from September 30, 2021. “The Central Government, in continuation of its commitment to address the hardship being faced by various stakeholders on account of the Covid-19 pandemic, has, on consideration of representations received from various stakeholders, decided to extend timelines for compliances under the Income-tax Act,” the Central Board of Direct Taxes (CBDT) said on Fr...
The government has granted an exemption to non-residents (NRs) investing in category I and category II alternative investment funds (AIFs) located in the International Financial Services Centre (IFSC) from furnishing the permanent account number (PAN). This was a long-standing demand from foreign investors wanting to pool money at IFSC, instead of other offshore jurisdictions, such as Mauritius and Singapore, which do not require investors to obtain PAN. Currently, a sizea...
In line with the announcement made in the Union Budget, Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman formally launched the facility for instant allotment of PAN (on near to real time basis) here today. This facility is now available for those PAN applicants who possess a valid Aadhaar number and have a mobile number registered with Aadhaar. The allotment process is paperless and an electronic PAN (e-PAN) is issued to the applicants free of cost. It may be recalle...
To get a new PAN card you need not fill up a 2-page application form and wait for a few days anymore as the income tax department has launched a new facility for taxpayers allowing anyone with an Aadhaar card to get an instant PAN card online and that too for free. The instant e-PAN card application form needs you to input only your Aadhaar number after which an OTP is sent on your linked mobile phone number for completion of e-KYC process. A Permanent Account Number (PAN) is issued ...
Comments