Tony is carrying on a wholesale business of selling fruits and vegetables. His shop is in a local wholesale market. His turnover in the previous year was ₹ 6 lakh. As per rules, he has to quote a ten digit alphanumeric number in all his business transactions. This number enables linking all transactions of the 'person' with the department which issues this number. Identify the number and state any two 'persons' who must have this number.

Question

Accepted Answer

PAN (Permanent Account Number). Two persons who must have PAN: (i) All existing taxpayers or persons required to furnish a return of income. (ii) Any person carrying on business or profession whose total sales, turnover or gross receipts are likely to exceed five lakh rupees in any previous year.