Deposits in the names of Senior Citizens

This query is : Resolved

Pramod H. Divecha (Querist)
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28 August 2009 what is the way a senior citizen (78 Yrs)who has never been assessed to Tax and who does not possess a PAN card place deposits of over Rs 50,000/- with a company. I am told, that even if form No. 60 is submitted companies do not accept the deposits on the ground that PAN card is must.

Kindly clarify.

CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)
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28 August 2009 PAN (Permanent Account Number) is only a mode of identification required under the Income-tax Act. PAN is required to be obtained only by persons who have taxable income.
Hence this is not mandatory for depositing money over Rs.50000/- by Senior Citizens or any other. Form 60 is accepted in substitution of PAN, where it is necessary to be cited for any transaction.
But Sec. 139A does not place a bar for others who may voluntarily apply for and get such PAN as specifically provided under sub-section (3) of Sec. 139A.

If the assessee has PAN, the necessity of establishing identification with such declaration in Form 60 on every occasion, when PAN is required, is dispensed with.