Section 262 — Permanent Account Number

(1) Every person who has not been allotted a Permanent Account Number
shall, within such time as may be prescribed, apply to the Assessing Officer
for its allotment if he fulfils any of the following conditions:—
( a) his total income or the total income of any other person for which he is
assessable under this Act during any tax year exceeded the maximum
amount not chargeable to income-tax; or
( b) he is carrying on any business or profession whose total sales, turnover
or gross receipts are or is likely to exceed ` 5,00,000 in any tax year; or
( c) he is required to furnish a return of income under section 263 for any
tax year; or
( d) he is a resident, other than an individual, which enters into a financial
transaction aggregating to ` 2,50,000 or more in a tax year; or
( e) he is the managing director, director, partner, trustee, author, founder,
karta, chief executive officer, principal officer or office bearer of the per-
son referred to in clause (d) or any person competent to act on behalf of
the person referred to in clause (d); or
( f) he intends to enter into such transaction as may be prescribed29a by the
Board in the interest of revenue.
(2) Any person, not covered under sub-section (1) may apply to the Assessing Officer
for the allotment of a Permanent Account Number after which the Assessing Officer
shall allot a Permanent Account Number to such person.
(3) Every person shall quote Permanent Account Number in all his returns to, or
correspondence with, any income-tax authority and in all challans for the payment
of any sum due under this Act.
(4) Every person shall intimate the Assessing Officer of any change in his address
or in the name and nature of his business on the basis of which the Permanent
Account Number was allotted to him.
(5) Every person who is eligible to obtain Aadhaar number shall quote such number
in the application form for allotment of Permanent Account Number and in the
return of income.
(6)(a) For the cases other than sub-section (5), every person who has been allotted
Permanent Account Number and who is eligible to obtain Aadhaar number, shall
intimate his Aadhaar number to the prescribed income-tax authority in such form
and manner, as may be prescribed;
(b) if a person fails to intimate his Aadhaar number as per clause (a), the Permanent
Account Number allotted to that person shall be made inoperative in such manner
as may be prescribed.
(7) Every person who is required to furnish or intimate or quote his Permanent
Account Number under this Act, and who—
( a) has not been allotted a Permanent Account Number but possesses the
Aadhaar number, may furnish or intimate or quote his Aadhaar number in
lieu of the Permanent Account Number, and such person shall be allotted
a Permanent Account Number in the manner, as may be prescribed;
( b) has been allotted a Permanent Account Number, and who has intimated
his Aadhaar number as per sub-section (6) may furnish or intimate or
quote his Aadhaar number in lieu of the Permanent Account Number.
(8) A person who has already been allotted a Permanent Account Number cannot
apply, obtain or possess another Permanent Account Number.
(9)(a) Every person entering into such transaction, as may be prescribed, shall quote
his Permanent Account Number or Aadhaar number, in the documents pertaining
to such transactions and also authenticate such Permanent Account Number or
Aadhaar number, in the manner, as may be prescribed;
(b) every person receiving any document relating to the transactions referred to in
clause (a), shall ensure that Permanent Account Number or Aadhaar number, has
been duly quoted in such document and that such Permanent Account Number or
Aadhaar number is authenticated in such manner, as may be prescribed.
(10) The Board may make rules providing for—
( a) the form, manner and time in which an application may be made for
the allotment of Permanent Account Number and the particulars which
such application shall contain;
( b) class or classes of persons who shall be required to apply for allotment
of Permanent Account Number;
( c) categories of documents 43[pertaining to, business or profession, or other
transactions,] in which Permanent Account Number shall be quoted by
every person;
( d) the form and manner in which the person who has not been allotted a
Permanent Account Number shall make his declaration;
( e) manner of authentication of Permanent Account Number or Aadhaar
number;
( f) class or classes of persons to whom the provisions of this section shall
not apply having regard to the transactions or the circumstances.
(11)(a) The Central Government may, by notification, specify any class or classes
of persons who shall apply to the Assessing Officer for the allotment of Permanent
Account Number within such time as mentioned in such notification;
(b) the class or classes of persons in clause (a) may include such persons––
( i) by whom tax is payable under this Act; or
( ii) by whom any tax or duty is payable under any other law in force; or
( iii) being importers and exporters, even when no tax is payable by them.
(12) The provisions of sub-sections (5) and (6) shall not apply to such person or
class or classes of persons or any State or part of any State, as may be notified by
the Central Government.
(13) For the purposes of this section,—
( a) “Aadhaar number” shall have the same meaning as assigned to it in
section 2(a) of the Aadhaar (Targeted Delivery of Financial and Other
Subsidies, Benefits and Services) Act, 2016 (18 of 2016);
( b) “Assessing Officer” includes an income-tax authority who is assigned the
duty of allotting Permanent Account Number;
( c) “authentication” means the process by which the Permanent Account
Number or Aadhaar number along with demographic information or
biometric information of an individual is submitted to the income-tax
authority or such other authority or agency as may be prescribed for its
verification and such authority or agency verifies the correctness, or the
lack thereof, on the basis of information available with it.
B.—Filing of return of income