The PERMANENT ACCOUNT NUMBER (PAN) under Section 139A ITA 1961 is mandatory for:
Answer & Solution
Correct answer: A.
1. Section 139A Income Tax Act 1961 prescribes PAN (Permanent Account Number):
2. (i) Every PERSON whose total income exceeds basic exemption limit;
3. (ii) Every PARTNERSHIP/COMPANY/HUF carrying on business or profession;
4. (iii) Every PERSON liable to pay any tax under the Act;
5. (iv) Every PERSON entering into SPECIFIED TRANSACTIONS (specified under Section 139A(7) and Rule 114E):
6. (a) Cash deposit > Rs 50,000 in a day;
7. (b) Cash purchase of bank draft > Rs 50,000;
8. (c) Cash payment for hotel/restaurant > Rs 50,000;
9. (d) Cash payment for foreign travel > Rs 50,000;
10. (e) Purchase of mutual funds > Rs 50,000;
11. (f) Purchase of bonds/debentures > Rs 5 lakh;
12. (g) Sale/purchase of motor vehicle (other than two-wheeler);
13. (h) Opening bank/demat account;
14. (i) Cash deposit > Rs 2.5 lakh during 9 Nov - 30 Dec 2016 (demonetisation rule);
15. (j) PAN-Aadhaar linkage now mandatory (Section 139AA).
16. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 139A_
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