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2012 (6) TMI 451 - HC - Income TaxApplicability of Section 206AA to persons whose income is below taxable limit - non-acceptance of Form 15G by Bank on ground of non-production of PAN - Held that:- Section 206AA makes it conditional for every person who wish to have a transaction in the bank or financial institution including small investors/depositors, invariably to have a PAN. Imposition of such condition on small depositors would cause hindrance and discourage small investors to come forward to invest their money for secured returns and as security for their future. This runs contrary to what has been contemplated u/s 139A. Hence, Section 206AA is made inapplicable to persons and read down from the Statute for whose income is less than the taxable limit. Banking and financial institutions shall not invariably insist upon PAN from such small investors as well as from persons who intend to open an account in the bank or financial institution.
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