QUOTING OF PERMANENT ACCOUNT NUMBER IN DOCUMENTS PERTAINING TO CERTAIN PRESCRIBED TRANSACTIONS [SECTION 139A]
The statutory requirement
1. Under section 139A(5), every person shall quote the PAN allotted to him in the following documents:
| ♦ | All returns submitted to any income-tax authority. | |
| ♦ | All correspondence with any income-tax authority [i.e., CBDT, Principal Directors- General/Principal Chief Commissioners/Principal Directors/Principal Commissioner/Directors-General of Income-tax, Chief Commissioners of Income-tax, Directors of Income-tax, Commissioner of Income-tax, Addl./Deputy/Joint Directors, Assistant Directors/Assistant Commissioners of Income-tax, Income-tax Officers, Tax Recovery Officers, and Inspectors of Income-tax]. | |
| ♦ | All challans for the payment of any sum due under the Act. | |
| ♦ | All documents pertaining to such transactions as may be prescribed by the CBDT in the interests of revenue, and entered into by him. [This aspect is explained in detail in para 3]. Section 139A(6) provides that every person receiving any document relating to such a prescribed transaction must ensure that PAN has been duly quoted in the document. |
Every person is also required to intimate the Assessing Officer any change in his address or in the name and nature of his business on the basis of which the PAN was allotted to him.
The requirements under the Rules
2. Section 139A(8) provides inter alia that the Board may make rules providing for the following aspects:
| ♦ | The categories of transactions in relation to which PAN should be quoted by every person in the documents pertaining to the aforesaid transactions. | |
| ♦ | Class or classes of persons to whom the aforesaid requirement shall not apply. | |
| ♦ | The form and manner in which the person who has not been allotted PAN shall make his declaration. | |
| ♦ | The manner in which PAN should be quoted in the said transactions. | |
| ♦ | The time and manner in which the said transactions should be intimated to the prescribed authority. |
Rules 114B to 114D cover the aforesaid aspects.
Transactions in relation to which permanent account number is to be quoted in all documents for the purpose of clause (c) of sub-section (5) of section 139A.
3. Rule 114B provides that every person shall quote his permanent account number in all documents pertaining to the transactions specified in the Table below, namely:—
TABLE
| Sl. No. | Nature of transaction | Value of transaction | ||
| (1) | (2) | (3) | ||
| 1. | Sale or purchase of a motor vehicle or vehicle, as defined in clause (28) of section 2 of the Motor Vehicles Act, 1988 which requires registration by a registering authority under Chapter IV of that Act, other than two wheeled vehicles. | All such transactions. | ||
| 2. | Opening an account [other than a time-de-posit referred to at Sl. No. 12 and a Basic Savings Bank Deposit Account] with a banking company or a co-operative bank to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act). | All such transactions. | ||
| 3. | Making an application to any banking company or a co-operative bank to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution, for issue of a credit or debit card. | All such transactions. | ||
| 4. | Opening of a demat account with a depository, participant, custodian of securities or any other person registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992. | All such transactions. | ||
| 5. | Payment to a hotel or restaurant against a bill or bills at any one time. | Payment in cash of an amount exceeding fifty thousand rupees | ||
| 6. | Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time. | Payment in cash of an amount exceeding fifty thousand rupees. | ||
| 7. | Payment to a Mutual Fund for purchase of its units. | Amount exceeding fifty thousand rupees. | ||
| 8. | Payment to a company or an institution for acquiring debentures or bonds issued by it. | Amount exceeding fifty thousand rupees. | ||
| 9. | Payment to the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 for acquiring bonds issued by it. | Amount exceeding fifty thousand rupees. | ||
| 10. | Deposit with a banking company or a co-operative bank to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act). | Deposits in cash exceeding fifty thousand rupees during any one day. | ||
| 11. | Purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act). | Payment in cash for an amount exceeding fifty thousand rupees during any one day. | ||
| 12. | A time deposit with,— | Amount exceeding fifty thousand rupees or aggregating to more than five lakh rupees during a financial year. | ||
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| 13. | Payment for one or more pre-paid payment instruments, as defined in the policy guidelines for issuance and operation of pre-paid payment instruments issued by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007, to a banking company or a co-operative bank to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution. | Payment in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating to more than fifty thousand rupees in a financial year. | ||
| 14. | Payment as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938. | Amount aggregating to more than fifty thousand rupees in a financial year. | ||
| 15. | A contract for sale or purchase of securities (other than shares) as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956. | Amount exceeding one lakh rupees per transaction. | ||
| 16. | Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange. | Amount exceeding one lakh rupees per transaction. | ||
| 17. | Sale or purchase of any immovable property. | Amount exceeding ten lakh rupees or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees. | ||
| 18. | Sale or purchase, by any person, of goods or services of any nature other than those specified at Sl. Nos. 1 to 17 of this Table, if any. | Amount exceeding two lakh rupees per transaction: |
Notes : 1. Where a person, entering into any transaction referred to in this rule, is a minor and who does not have any income chargeable to income-tax, he shall quote the permanent account number of his father or mother or guardian, as the case may be, in the document pertaining to the said transaction:
2. Any person who does not have a permanent account number and who enters into any transaction specified in this rule, he shall make a declaration in Form No. 60 giving therein the particulars of such transaction:
3. The provisions of this rule shall not apply to the following class or classes of persons, namely :—
| (i) | the Central Government, the State Governments and the Consular Offices; | |
| (ii) | the non-residents referred to in clause (30) of section 2 of the Act in respect of the transactions other than a transaction referred to at Sl. No. 1 or 2 or 4 or 7 or 8 or 10 or 12 or 14 or 15 or 16 or 17 of the Table. |
4. “Payment in connection with travel” includes payment towards fare, or to a travel agent or a tour operator, or to an authorised person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999;
5. “Travel agent or tour operator” includes a person who makes arrangements for air, surface or maritime travel or provides services relating to accommodation, tours, entertainment, passport, visa, foreign exchange, travel related insurance or other travel related services either severally or in package;
6. “Time deposit” means any deposit which is repayable on the expiry of a fixed period.
Verification of Permanent Account Number in transactions specified in rule 114B.
4. Rule 114C(1) provides that any person being,—
| (a) | a registering officer or an Inspector-General appointed under the Registration Act, 1908; | |
| (b) | a person who sells the immovable property or motor vehicle; | |
| (c) | a manager or officer of a banking company or co-operative bank, as the case may be, referred to at Sl. No. 2 or 3 or 10 or 11 or 12 or 13 of rule 114B; | |
| (d) | post master; | |
| (e) | stock broker, sub-broker, share transfer agent, banker to an issue, trustee of a trust deed, registrar to issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediaries registered under sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992; | |
| (f) | a depository, participant, custodian of securities or any other person registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 referred to at Sl. No. 4 of rule 114B; | |
| (g) | the principal officer of a company referred to at Sl. No. 3 or 4 or 8 or 12 or 13 or 15 or 16 of rule 114B; | |
| (h) | the principal officer of an institution referred to at Sl. No. 2 or 3 or 8 or 10 or 11 or 12 or 13 of rule 114B; | |
| (i) | any trustee or any other person duly authorised by the trustee of a Mutual Fund referred to at Sl. No. 7 of rule 114B; | |
| (j) | an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934, or of any agency bank authorised by the Reserve Bank of India; | |
| (k) | a manager or officer of an insurer referred to at Sl. No. 14 of rule 114B, |
who, in relation to a transaction specified in rule 114B, has received any document shall ensure after verification that permanent account number has been duly and correctly mentioned therein or as the case may be, a declaration in Form 60 has been duly furnished with complete particulars.
Rule 114C(2) provides that any person, being a person raising bills referred to at Sl. No. 5 or 6 or 18 of rule 114B, who, in relation to a transaction specified in the said Sl. No., has issued any document shall ensure after verification that permanent account number has been correctly furnished and the same shall be mentioned in such document, or as the case may be, a declaration in Form 60 has been duly furnished with complete particulars.
Time and manner in which persons referred to in rule 114C shall furnish a statement containing particulars of Form No. 60.
5. Rule 114D(1) provides as under :
| ♦ | Every person referred to in,— |
| (I) | clauses (b) to (k) of sub-rule (1) of rule 114C; and | |
| (II) | sub-rule (2) of rule 114C and who is required to get his accounts audited under section 44AB of the Act, |
| who has received any declaration in Form No. 60, on or after 1-1-2016, in relation to a transaction specified in rule 114B, shall— |
| (i) | furnish a statement in Form No. 61 containing particulars of such declaration to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation) through online transmission of electronic data to a server designated for this purpose and obtain an acknowledgement number; and | |
| (ii) | retain Form No. 60 for a period of six years from the end of the financial year in which the transaction was undertaken. |
| ♦ | Rule 114D(2) provides that the statement referred to in (i) above shall,— |
| (a) | where the declarations are received by the 30th September, be furnished by the 31st October of that year; and | |
| (b) | where the declarations are received by the 31st March, be furnished by the 30th April of the financial year immediately following the financial year in which the form is received. |
| ♦ | Rule 114D(3) provides that the statement referred to above shall be verified— |
| (a) | in a case where the person furnishing the statement is an assessee as defined in clause (7) of section 2 of the Act, by a person specified in section 140 of the Act; | |
| (b) | in any other case, by the person referred to in rule 114C. |
Provisions applicable to TDS and TCS transactions
6. The following provisions have been made in respect of Deduction of Tax at Source (TDS) and Collection of Tax at Source (TCS).
| ♦ | Intimating PAN to tax deductor/tax collector – PAN has to be intimated in the following situations : | |
| ♦ | TDS TRANSACTIONS – Under section 139A(5A), every person receiving any sum or income or amount from which tax has been deducted under the provisions of Chapter XVII-B [sections 192 to 196D] shall intimate his PAN to the person responsible for deducting such tax. | |
| ♦ | TCS TRANSACTIONS – Under section 139A(5C), every buyer or licensee or lessee referred to in section 206C shall intimate his PAN to the person referred to in that section. | |
| ♦ | Quoting of PAN by tax deductor – Under section 139A(5B), the tax deductor is required to quote the PAN of the person to whom any sum or income or amount has been paid after deducting tax at source, in the following documents :— |
| (i) | Statement furnished under section 192(2C). | |
| (ii) | All certificates furnished under section 203. | |
| (iii) | All returns furnished to the department under section 206. | |
| (iv) | All statements under section 200(3). |
This provision takes effect from 1-4-2002 in respect of banking companies and co-operative banks, and from 1-6-2001 in respect of any other persons.
| ♦ | The exception – Under the second proviso to section 139A(5B), the requirement of intimating PAN and quoting PAN will not apply in the case of a person whose total income is not chargeable to income-tax or who is not required to obtain a PAN, if such person furnishes to the tax deductor a declaration in Form No. 197A in the prescribed form (Form No. 15G or Form No. 15H, as the case may be) and manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil. | |
| ♦ | Quoting of PAN by tax collector – Under section 139A(5D), every person collecting tax under section 206C shall quote the PAN of every buyer or licensee or lessee in the following documents : |
| (i) | All certificates furnished in accordance with section 206C(5C). | |
| (ii) | All returns furnished to the department under sub-section (5A) or sub-section (5B) of section 206C. | |
| (iii) | All statements under section 206C(3). |
| ♦ | Effect of non-furnishing of PAN – See ‘Deduction of tax at source – Effect of non-furnishing of PAN’. |
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