Question

Permanent Account Number (PAN) is defined under

• A. Wealth Tax
• B. GST
• C. Income Tax Act 1961
• D. Finance Act 1992

Hint:

For tax law, know the parent Act for key concepts: PAN is under the Income Tax Act, GSTIN is under the GST Acts, and DIN (Director Identification Number) is under the Companies Act.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The question asks under which law the Permanent Account Number (PAN) is defined and regulated. PAN is a ten-character alphanumeric identifier issued by the Indian Income Tax Department.

Step 2: Key Legal Provision:
Section 139A of the Income Tax Act, 1961, deals with the requirement to apply for and quote the Permanent Account Number.

Step 3: Detailed Explanation:
The concept of PAN was introduced and is governed by the Income Tax Act, 1961. Section 139A empowers the Central Board of Direct Taxes (CBDT) to make rules regarding the application for and allotment of PAN. The section also specifies the persons and transactions for which quoting PAN is mandatory. It is the primary identifier for taxpayers in India and is used for all tax-related purposes.
- Wealth Tax Act, 1957 has been abolished in India since 2015.
- GST (Goods and Services Tax) has its own identifier, the GSTIN, although PAN is required to obtain a GSTIN.
- Finance Acts are passed annually to make amendments to tax laws; they are not the parent Act for PAN.

Step 4: Final Answer:
Permanent Account Number (PAN) is defined and governed under the Income Tax Act, 1961.