Section 139A lays down the conditions in which a person is required to obtain PAN. In current sce-nario, PAN has to be mentioned in all communications with the Income-tax Dept. and in specified financial transactions which exceed the threshold limit.
It has been noticed by the Govt., that sometimes persons entering into high-value transactions, such as purchase of foreign currency or huge withdrawal from the banks, do not possess a PAN. Thus, the mandatory conditions for obtaining PAN has been proposed to be relaxed as under:
- A person may furnish his Aadhaar number in lieu of PAN, and such person shall be allotted a PAN in the prescribed manner;
- Every person who has been allotted a PAN, and who has linked his Aadhaar number with PAN as per section 139AA, may furnish his Aadhaar number in lieu of a PAN for all the transactions where quoting of PAN is mandatory as per Income-tax Act.
Consequential amendments have also been proposed in the penal provisions of Section 272B so as to levy a penalty of Rs. 10,000 for each default in the following cases:
- If person (i.e., banks, financial institution, etc.) fails to receive or authenticate the PAN or Aadhaar.
- If assessee fails to quote or authenticate his PAN or Aadhaar in specified transactions.