Independent Gender Category for Transgenders in PAN form

The transgenders will now be recognised as an independent category in the PAN form as per the amendment of Income Tax rules by the Indian Government to obtain a Permanent Account Number (PAN) for their tax-related transactions.

A new tick box will be provided for the transgenders to apply for the PAN as The Central Board of Direct Taxes (CBDT), which frames policy for the department, issued a notification on Monday.The notification, issued under sections 139A and 295 of the Income Tax Act, specifies the new application process for obtaining a PAN number by an individual.

Earlier,only male and female gender categories were available to be chosen on the PAN application form.

Amendment of  the tax rules was brought out in view of some representations received.Individuals from the transgender community were facing struggles in obtaining a PAN card and this problem was further magnified as Aadhaar had the third gender category but not PAN. Therfore,they were not able to link their PAN with their Aadhaar due to this aberration.

PAN is a 10-digit unique alphanumeric number assigned by the Income Tax department to individuals and entities.

The government has now made quoting of Aadhaar mandatory for filing income tax returns (ITRs) as well as obtaining a new PAN.

Section 139 AA (2) of the Income Tax Act says that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities.

As per updated data till March 5, over 16.65 crore PANs, out of the total about 33 crore, have been linked with Aadhaar. The deadline to link these two has been extended recently till June 30 by the CBDT.