Section 139A sets out the conditions in which an individual is required to get PAN. In current situation, PAN must be mentioned in all communications with the Income-tax Dept and in indicated financial transactions which surpass the threshold limit.
It has been seen by the Govt., that occasionally people going into high-esteem transactions, for example, purchase of foreign currency or enormous withdrawal from the banks, don’t have a PAN. In this manner, the mandatory conditions for getting PAN has been proposed to be relaxed as under:
- An individual may outfit his Aadhaar number in lieu of PAN, and such individual will be designated a PAN in the recommended way;
- Each individual who has been designated a PAN, and who has linked his Aadhaar number with PAN according to section 139AA, may furnish his Aadhaar number in lieu of a PAN for all the transactions where citing of PAN is required according to Income-tax Act.
Considerable changes have also been proposed in the penal arrangements of Section 272B in order to impose a penalty of Rs. 10,000 for each default in the following cases:
- If person (i.e., banks, financial institution, and so on.) fails to get or validate the PAN or Aadhaar.
- In case the assessee fails to quote or verify his PAN or Aadhaar in specific transactions.
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