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CS Executive · Tax Laws and Practice · Procedural Compliance under Income Tax

Under the Income-tax Act, 2025, Meridian Traders LLP, a resident non-individual without a PAN, enters into financial transactions aggregating to Rs. 2,60,000 in a tax year. Which statement is correct about its partners?

A partner is also required to apply for a PAN. Where a resident non-individual enters into financial transactions of Rs. 2,50,000 or more in a tax year, its partners, directors, trustees and other office bearers, or persons competent to act for it, must also apply if they have no PAN.

  1. AOnly the LLP must apply; partners have no PAN obligation on this ground
  2. BA partner of the LLP is also required to apply for a PAN, if not already allotted oneCorrect
  3. CPartners need apply only if their own turnover exceeds Rs. 5,00,000
  4. DPartners must apply only if the transactions exceed Rs. 10,00,000

Explanation

Under section 262(1)(d), a resident non-individual entering into financial transactions of Rs. 2,50,000 or more must apply, and Rs. 2,60,000 qualifies. Clause (e) extends the obligation to its partners, directors, trustees and similar persons, or any person competent to act on its behalf. Saying partners have no obligation ignores clause (e).

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