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CBDT Instruction on Allotment of one PAN to two or more taxpayers

cbdt-instruction-on-allotment-of-one-pan-to-two-or-more-taxpayers

CBDT has issued instructions on the issue of allotment of PANs to one or more persons. In this regard, Instruction No. 9 dated 25.03.2021 is issued to Principal Chief Commissioners of Income Tax to resolve the issue of allotment of one PAN to two or more persons and in rare cases to more than two persons. The Instruction states that “the person who has been allotted PAN earlier in time will be the actual owner of that PAN and the same will be retained by him and the person who has been inadvertently allotted the same PAN later in time, will have to obtain a new PAN by surrendering his wrongly allotted PAN.”


This was as per an Instruction issued in 2013. The operation of the said instruction has resulted in some grievances which have been addressed in this Instruction.



Read the full text of Instruction No. 9 dated 25.03.2021.


DIRECTORATE OF INCOME TAX (SYSTEMS) 

ARA Centre, Ground Floor, E-2. Jhandewalan Extension

New Delhl·110055 


F.No ADG(S)-1/PAN/2020-21/6177 ITBA-PAN INSTRUCTION No.9


Dated: 25-03-2021 


To, 


All Principal Chief Commissioners of Income Tax, 


Sir/Madam, 


Sub: - Allotment of one PAN to two or more taxpayers- resolution regarding. 


Instances of allotment of one PAN to two persons and in rare cases even to more than two persons have come to the notice of Directorate of Income-tax(Systems). In this regard the Directorate formulated a policy and the same was issued vide AIS Instruction No. 82 dated 21.06.2013 which stated that "the person who has been allotted PAN earlier in time will be the actual owner of that PAN and the same will be retained by him and the person who has been inadvertently allotted the same PAN later in time, will have to obtain a new PAN by surrendering his wrongly allotted PAN". 


2. However, application of the said instruction has resulted in some grievances. After considering the grievances raised and with the approval of Competent Authority the above instruction is partially modified as follows:-


S. No. 

First PAN holder

Second PAN holder

Resolution

1.

Not filing ITR

filing ITR 

First PAN holder will be allotted a new PAN as per existing procedure and second PAN holder will continue to retain the original PAN 

2.

Not filing ITR

Not filing ITR

Existing procedure will be followed i.e. first allottee will retain the original P AN and second allottee wi II be given a new PAN 

3.

Filed ITR for part years

Filed ITR for part years

To be resolved after gathering information with regard to the pending demands and refunds in respect to those returns filed, with the approval of ADG(System)-1 

4.

Any other case not covered above

Resolution will be made after gathering information with regard to the pending demands and refunds in respect to the returns filed by the PAN holders, with the approval of ADG (System)-I.


3. Therefore, it is requested that the field officers and RCCs may be directed to deal with such type of cases relating to allotment of one PAN to two or more taxpayers as per this instruction after proper analysis of PAN details along with examination of audit log of PAN under consideration.


(Sanjai Kumar Yadav)

Addl. DIT(S)- I,

O/0 ADG(S)-1 , New Delhi 



Download Copy of CBDT Instruction No. 9 dated 25.03.2021 on Allotment of one PAN to two or more taxpayers




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