IRDA extends deadline of PAN requirements

“Many insurers have expressed difficulty in meeting with the deadline of 1st August, 2009 and requested for an extension. Taking the representation of the insurers into consideration, the deadline for complying with the circular is now extended to September one, 2009,” IRDA said in a circular to all insurers.

The insurance watchdog in a circular last month had made it mandatory for insurers to collect  PANs of every customer paying an annual premium of over Rs 1 lakh as a part of the know your customer norms.

In the circular issued on Wednesday, IRDA exempted persons having only agricultural income and NRIs with no assessed income from the requirement of PANs as they are not mandatory for them under the Income Tax Act.

 “It is now decided that insurers shall insist on PAN from all persons who are required to obtain the same under the provision of I-T Act, 1961,” IRDA said. Insurers must collect a signed declaration from persons exempted from  requirement of PAN, stating the provisions of the I-T Act under which they have been exempted.