CBDT Notification No 88/2023 Dated10 October 2023: Amendment in Rule 114B, 114BA & 114BB: for furnishing declaration in Form 60 by person not having PAN; Company/Firm have to possess a PAN

[Vivek Jalan]

The CBDT has amended rules related to obtaining and quoting PAN. The amendments have been made in Rules 114B, 114BA and 114BB of The Income Tax Rules along with Form 60. The following are the amendments:

1. Amendment in Rule 114B: Rule 114B specifies transactions in relation to which PAN is to be quoted in all documents for the purpose of Section 139A(5)(c). Every person specified under this rule shall quote his PAN in all documents pertaining to the transactions specified under the rule. The second proviso to Rule 114B allows a person to furnish a declaration in Form No. 60 if he doesn’t possess a PAN. The CBDT has amended this proviso to exclude a “company or a firm” from the requirement to furnish Form No. 60. Also, a new proviso has been inserted to allow a foreign company to furnish a declaration in Form No. 60 if a foreign company has no income which is chargeable to income tax in India and does not have PAN. This relaxation is available only with respect to the certain transactions entered into with an IFSC banking unit. To incorporate the change made in Rule 114B, Form 60 has also been amended.

2. Amendments in Rule 114BA and Rule 114BB: Rule 114BA specifies the list of transactions, for the purposes of Section 139A(1)(vii), when entered into by any person who has not been allotted a PAN, shall within such time, as may be prescribed, apply to the AO for the allotment of a PAN. Rule 114BB mandates that every person shall, at the time of entering into a specified transaction for the purpose of Section 139A(6A), quote his PAN or Aadhaar number, in documents pertaining to such transaction, and every specified person for the purpose of clause (ab) of Explanation to section 139A, who receives such document, shall ensure that the said number has been duly quoted and authenticated. A new proviso has been inserted to provide that provisions of these rules do not apply if a non-resident or foreign company conducts transactions with an IFSC banking unit that involve deposits or withdrawals through means other than cash or opening a current account that is not a cash credit account. However, the benefit is available subject to the condition that non-resident/foreign company has no income chargeable to tax in India.