2012 (6) TMI 451

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....per S 139A of the Act. Petitioners even filed Form 15G as required under S.197A of the Act to enable the 3rd and 4th respondents not to deduct tax at source as per S. 193 of the Act. 3. According to the petitioners, the 3rd and 4th respondents have informed the petitioners that even Form 15G filed by them cannot be accepted for the purpose of exemption from deduction unless their Permanent Account Number (PAN) is communicated, pursuant to the amendment to S.206AA of the Finance Act, 2009 based on which the 3rd and 4th respondents insisted for furnishing of PAN. The grievance of the petitioners is, persons like them (individual investors) are not assessees and not assessed to income tax. 4. The Parliament also being aware of the plight of ....

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....g on any business or profession whose total sales, turn over or gross receipts are or is likely to exceed five lac rupees in any previous year; or (iii)  who is required to furnish a return of income under sub-section (4A) of S.139 ;or (iv)  being an employer, who is required to furnish a return of fringe benefits under S.115 WD and who has not been allotted a permanent account number shall, within such time as may be prescribed, apply to the Assessing Officer for the allotment of a permanent account number. S.206AA:: Requirement to furnish permanent account number (1) Notwithstanding any thing contained in any other provisions of this Act, any person entitled to receive any sum or income or amount, on which tax is deductible....

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....nvariably to have a PAN. This runs contrary to what has been contemplated under S. 139A of the Act which was introduced by the Legislature in its wisdom. What is not in dispute is, persons whose income is below the taxable limit need not have a PAN and also they need not furnish income tax declaration/returns. Of course, under the Finance Act, it is made clear that a person whose income is less than the taxable limit is not taxable. Such of the small investors who come forward to invest their savings from earnings as security for their future, by virture of the present S.206AA of the Act, necessarily have to give their PAN. The poor and illiterate/uneducated persons are finding it difficult rather to approach the various government departme....