As per the recent update, many taxpayers could be facing difficulty in filing the Income-tax return (ITR) for the year 2019-20. One of the biggest issues that have emerged out of this is the furnishing of PAN of companies in which the taxpayer currently holds a share or could have held one during the assessment year 2018-19. Many of the investors get their share allotted during Initial public offerings (IPOs), which they hold for long. At times those companies due to some reason go bust and the process of receiving the annual reports stops.
The new ITR forms mandate the taxpayer to list out the companies along with its PAN. According to Archit Gupta, Founder & CEO Clear Tax, it is mandatory to mention PAN of the company in which you have held directorship or investment during the FY 2018- 19.
However realizing the difficulties that one can get in obtaining such information and to ease the overall process, the income tax department has clarified that – “In such cases, PAN of the company may be shared. In such cases the PAN can’t be obtained, you may enter a default value as “NNNNN0000N”. Having said that if one still wishes to get the PAN, here are a few ways one can find it.
The choice of ITR form will also differ according to the source of income. “In cases where the taxpayer happens to be the director of a company, the PAN of such company should be entered in the income tax form ITR- 2 and ITR-3, while in cases where the taxpayer is not the director and is a shareholder of an unlisted company, the PAN of such company to be entered in ITR- 2, ITR- 3, ITR-5 and ITR- 7,” says Gupta.
In such cases where the investments are held in equity shares of an unlisted company during the FY 2018- 19, then the details outlined below must be shared:
1. Company’s name
2. PAN of the company
3. Opening balance- Number of shared held and cost of acquisition
4. Shares obtained during the year
5. Number of shares and sale consideration
6. Closing balance
Having said that the difficulties in obtaining the PAN of the companies which have been liquidated at times become difficult. Income tax department requires the user to verify the PAN and to avail the facilities, therefore, the user should have the PAN of the company along with the name and date of incorporation,’ says Gupta.
Alternatively, there are two ways to obtain the PAN of unlisted companies- either through the Income Tax India e- filing website or GSTIN of the company. “In case you know the Goods and Service Tax registration number, you can locate the PAN from the GSTIN of the taxpayer,” informs Gupta.