PAN or Permanent Account Number is a unique identification number issued to taxpayers by the Income Tax Department of India. It is a 10-digit alphanumeric number that is mandatory for all taxpayers to have for carrying out various financial transactions. PAN is used to link all the transactions of an individual and is a crucial document for filing income tax returns.
Section 139A of the Income Tax Act lays down the rules for the allotment and use of PAN. As per the existing provisions, there is no provision for amendment or surrender of PAN. However, with the increasing number of taxpayers, there have been several instances of jurisdictional issues arising due to non-intimation of change in address, name, etc.
To overcome these issues, it is suggested that the provision for amendment and surrender of PAN be included in Section 139A. The following points may be considered while drafting the provision:
(a) Application within 30 days of amendment in PAN data: Taxpayers should be given a time frame of 30 days to inform the Income Tax Department of any changes in their PAN data such as name, address, etc. This will ensure that the correct PAN data is maintained in the department's records.
(b) Surrender on death, merger, conversion, liquidation, and strike-off: In cases where the PAN holder is no longer in existence, such as death, merger, conversion, liquidation, and strike-off, the PAN should be surrendered. This will prevent any misuse of the PAN and ensure that the department's records are up-to-date.
Incorporating the provision for amendment and surrender of PAN in Section 139A will help in maintaining accurate records of the taxpayers and prevent