Ask Mint Money | If total income is not taxable, you may not need a PAN card

Ask Mint Money | If total income is not taxable, you may not need a PAN card

I am 48 years old and have no liabilities. I have taken Rs3 lakh insurance cover. I plan to invest Rs5,000 monthly for 5-10 years. Can I have two public provident fund (PPF) accounts? Will that help me save tax?


Any contribution made to keep in force life insurance of self, spouse and children along with any contribution made to a PPF account of self, spouse or children of an individual is eligible for deduction up to Rs1 lakh under section 80C.

As regard your query on opening two PPF accounts under the same name, please note that an individual cannot have more than one PPF account and the maximum amount which can be deposited in any PPF account in a particular financial year is Rs70,000 (the minimum being Rs500). Also with regard to your time horizon (5-10 years), please note that PPF scheme matures after 15 years from the end of the financial year in which the initial subscription is made and partial withdrawals are allowed but subject to certain conditions.

My mother is 58 years old. She has no income of her own. Does she need to have a PAN (permanent account number) card?

—Aparna Sen

As per the provisions of section 139A of the Income-tax Act, in any financial year, any person whose total income is not taxable is obliged to apply for a PAN before 31 May of the succeeding financial year. For women, income of up to Rs1.9 lakh is tax-exempt. Since your mother does not have any income of her own, she may not be mandatorily required to have a PAN.

Also, clause (5) of section 139A mandates quoting of PAN on certain specified transactions (for example, sale/purchase of immovable property/motor vehicle or applying for a telephone connection).

However, any person who does not have a PAN but enters such a transaction can make a declaration in form 60 (as prescribed under rule 114B of Income-tax Rules, 1962) and can proceed with the transaction without a PAN.

I run a jewellery shop. My wife wants to give her jewellery on rent so that we can invest that money into my business. What will be the tax treatment?


Assuming jewellery is ancestral and was not gifted by you to your wife, rental income derived by your wife from leasing such jewellery will be taxable as “income from other sources". Therefore, she will be liable to pay tax on such rental income at the tax slab rates applicable to her.

At the time of investing that money into your business, there shall be no tax implications, provided the transaction is by way of a gift of money from your wife to you since gift received from relatives is tax-exempt under section 56.

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