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Vistra India Update 364

Application for allotment of a permanent account number – Amendment to Rule 114

Effective from 1st April 2018, Section 139A of the Income Tax Act (hereinafter referred as Act) as amended vide Finance Act, 2018 provides that every person who is the managing director, director, partner, trustee, author, founder, kartha, chief executive officer, principal officer or office bearer of a resident (other than Individual) which enters into financial transaction of an amount aggregating to INR 250,000 or more in a financial year, has to mandatorily apply and obtain PAN in India. In line with the above amendment, the Central government has amended Rule 114 of the Income tax rules 1962 to provide that PAN is mandatory 

In the case of a person, being a resident, other than an individual, which enters into a financial transaction of an amount aggregating to two lakh fifty thousand rupees or more in a financial year and which has not been allotted any permanent account number, on or before the 31st day of May immediately following such financial year

In the case of a person, who is the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the person or any person competent to act on behalf of the person and who has not been allotted any permanent account number, on or before the 31st day of May immediately following the financial year in which the person enters into financial transaction 

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