Back in 2018, an amendment was made to section 139A of the Income Tax Act, that non-individual entities who have conducted financial transactions worth more than Rs 2.5 lakh in a financial year, will have to apply for a PAN by 31 May of the relevant assessment year. This includes individuals who manage accounts for these non-individual entities as well.
In line with the amendment that came into force by the Finance Act 2018, the CBDT (Central Board of Direct Taxes) in its notification dated 5 December 2018 set the aforesaid date of 31 May 2019 for the transactions taken place in fiscal year 2018-19.
Under the section 139A, a liable entity or person who needs to comply is, "a resident, other than an individual, which enters into a financial transaction of an amount aggregating to two lakh fifty thousand rupees or more in a financial year; or who is the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the person referred to in clause (v) or any person competent to act on behalf of the person referred to in clause (v)."
A penalty will be imposed on those who fail to comply. The penalty for non-compliance is as high as Rs 10,000.