NO PAN NEEDED FOR PEOPLE OUTSIDE THE TAX BRACKET
Karanataka High Court decided that Persons with Taxable Income below tax limit, need not have to possess PAN No. The High Court order came as a relief to thousands of individuals who are asked to provide PAN despite having income below the taxable limit. Section 206 AA of the Income-Tax Act, which became effective from assessment year 2010-11, makes it mandatory for every person to furnish PAN in their transactions with banks and financial institutions. This order was following a writ petition by An individual A.Kowsalay . Though their income is below taxable limit they were required to support with PAN No in order that the TDS is not deducted by the Financial Institiutions where they had invested inspite of submitting declaration under Form 15G. The petitioners have challenged the validity of Section 206AA of the Income-tax Act as they find it arbitrary and in violation of Article 14 of the Indian constitution.
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