LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

pan registration

SHUVRO ( (WANT TO LEARN) ) (175 Points)

28 September 2010

any income from regimental funds of Indian armed forces is exempt u/s 10(23AA). plz comment on whether it is compulsory for the regimental funds to have a pan number. it is urgent. If possible plz quote the authority also

Reply
Follow
Share

15 Replies

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 28 September 2010

Yes, PAN Applicable.....................

bcoz PAN is quoted in many cases.....

SHUVRO ( (WANT TO LEARN) ) (175 Points)
Replied 28 September 2010

dera ayush i am talking about the legal side. is it compulsory if yes thn the authority

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 28 September 2010

I Think PAN Should Be Taken...............

Bcoz No Where IT Authority Say That If U Have Exempted Income Only.

U Should Not Taken PAN.

and which authority u r talking abt.

nsdl.??

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14477 Points)
Replied 28 September 2010

https://www.taxwomanpune.com/CIRCULAR-AY-2010-11%28Army%29.pdf

Kindly read this circular may be help to you.

SHUVRO ( (WANT TO LEARN) ) (175 Points)
Replied 28 September 2010

dear ayush Sec 139 states that the following persons are required to have PAN compulsorily

1. if the income exceeds the maximum limit exempted from tax.( incomes of regimental funds are fully exempt u/s 10(23AA)

2. if the total sales/receipts/ turnover of a business is more than Rs 5 lakhs.(the activities of regimental funds are not termed as BUSINESS it is wholly welfare activities)

so are the regimental funds coming under compulsion to have PAN. plz continue the discussion

CA Final (CA Final Student) (856 Points)
Replied 29 September 2010

Yes PAN is applicable

So PAN should be taken

Hari Babu (CA Student) (82 Points)
Replied 29 September 2010

I think that, if Gross Total Income exceeds Basic Exemption Limit then only Return of income should be filed. In the above case Gross Total Income doesn't include exempted income. According to section 139(i), your exempted income does not include in basic exemption limit. So, I think no need of PAN.

Santosh (Student ( Final Year - New )) (348 Points)
Replied 29 September 2010

Originally posted by : Hari Babu
	I think that, if Gross Total Income exceeds Basic Exemption Limit then only Return of income should be filed. In the above case Gross Total Income doesn't include exempted income. According to section 139(i), your exempted income does not include in basic exemption limit. So, I think no need of PAN.

Chandan Singh (Professional) (270 Points)
Replied 29 September 2010

I am not understand the meaning of "regimental funds" ... plz somebody explain...

SHUVRO ( (WANT TO LEARN) ) (175 Points)
Replied 29 September 2010

dear chandan

regimental funds / non public funds are types of non profit organisations managed by the indian armed forces to look after the welfare of present and ex servicemen of the forces.any income of these funds are expressly exempted from IT u/s 10(23AA). e.g CSD canteen of the defence services. Hope u got it?

SHUVRO ( (WANT TO LEARN) ) (175 Points)
Replied 29 September 2010

dear hari

https://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=75ae4329-1651-4976-bb8b-23e69f16832a&rdb=sec&yr=75996b99-a798-4098-bca8-e66ee23fe426&sec=139&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

from the above it can be seen that while calculating TI for ITR purpose deductions u/s f section 10A or section 10B or section 10BA or Chapter VI-A are not to be taken into account. But in the above case the deduction is u/s 10. Hence according to me we have to take it into effect while calculating the total income.Now if we take into consideration sec 10(23AA) the whole income becomes nil as 100% of the income is exempted. That is why i was feeling that neither PAN nor ITR is applicabe..................Please response

kantijain (Chartered Accountant in Practice) (385 Points)
Replied 29 September 2010

Dear Shuvro,

After the combine reading of section 139A, rule 114, Section 2(45), section 5, i am of the view that though income from these regimental funds are exempt from tax u/s 10(23AA), they are liable to apply for PAN.

Section 139A talks about the total income & the total income will include all the income accruing or arising or received in India. though the subsequent provision provides for a relif or exemption the same cannot be taken as an excuse to not apply for PAN.

Further because of the current section 206AA & the TDS consequences, as a measure of abundant caution it is advisable for the organisation to apply pan immediately.

i hope your query is resolved.

SHUVRO ( (WANT TO LEARN) ) (175 Points)
Replied 29 September 2010

dear ram avatar singh

with due respect i must tell u that ur kind effort is relevant with the armed forces but not with the topic. u have said about individuals, where as regimental funds are something different from it. Thnkx for u cooperation

SHUVRO ( (WANT TO LEARN) ) (175 Points)
Replied 29 September 2010

mr kantijain

with due respect to ur clarification may i ask that why not SEC 10 is expressed in the lists od deduction to given effect to before arriving at total income for ITR purpose.

.........if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to the provisions of section 10A or section 10B or section 10BA or Chapter VI-A exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income ..............

source:law.incometaxofindia.gov.in