Permanent Account Number is a ten digit number which helps the Assessing Officer to identify any person. Currently the Income Tax Department is allotting PAN under the new Series to all assesses which includes ten alphanumeric characters and is issued in the form of a laminated card. The PAN is finally meant to replace the General Index Register Number which is at present in use.
As per section 139A of the Act obtaining PAN is compulsory for the following persons:-
1. Any individual whose total income or the total income of any other individual in respect of which he is assessable under the Act exceeds the maximum amount which is not chargeable to tax.
2. Any individual who is carrying on any business/profession whose total sales, proceeds or gross receipts are or are possible to exceed Rs. 5 Lakhs in any previous year.
3. Any individual who is required to submit a return of income under section 139(4) of the Act.
The obligation for applying for allotment of PAN under the New Series has now been extended to the whole of India.
Is PAN necessary?
It is obligatory to quote PAN on return of income, all correspondence with any income tax authority and challans for any payments due to Income Tax Department. It is also obligatory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes. Few such transactions are sale and purchase of immovable property/motor vehicle or payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants or in connection with travel to any foreign country. It is also obligatory to state PAN for obtaining a telephone or cellular telephone connection. Similarly, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000/- with a bank or post Office or depositing cash of Rs. 50,000/- or more in a bank.(Section 139A)
See Also: how to apply pan card duplicate?
List the Notified transactions where PAN must be quoted.
Every individual shall quote his permanent account number or General Index Register Number in all documents pertaining to the transactions specified below :-
a. Sale or purchase of any immovable property valued at Rs 5, 00, 000 or more.
b. Sale or purchase of motor vehicle/vehicles, which needs registration by a registering authority.
c. A time deposit, exceeding Rs 50, 000, with a banking company to which the Banking Regulation Act, 1949 applies (including any bank /banking institution mentioned to in section 51 of that Act)
d. A deposit, exceeding Rs 50, 000, in any account with Post Office Saving Bank
e. A contract of a value exceeding 10lakhs, for sale or purchase of securities
f. Opening an account in a bank
g. Making an application for telephone connection (including a cellular telephone connection)
h. Payment to hotels and restaurants against their bills for an amount exceeding 25, 000 Rs at a time.
Any person, who has not been allotted a PAN and who makes payment in cash or else by a crossed cheque drawn on a bank or by a crossed bank draft in respect of any transaction mentioned in clauses (a) to (h), shall have to make a declaration in Form No. 60 giving therein the particulars of such transaction.
In simple terms, it is mandatory to quote PAN in
• Application to open an account with a bank
• Application for telephone connection (including a cellular telephone)
• Documents relevant to sale or purchase of a motor vehicle
• Documents relevant to sale or purchase of immovable property valued at Rs. 5 lakh or more
• Documents relevant to deposits exceeding Rs. 50,000 in any account with a Post Office Savings Bank
• Documents relevant to a contract of a value exceeding Rs. 10lakhs for sale/purchase of securities (Shares, Debentures etc.)
• Payment to hotels & restaurants against their bills for an amount exceeding Rs. 25,000 at a time
• Returns of income
• Challans for payment of direct taxes
• All correspondence with Income-Tax Department
• Individuals must give their, as well as their father's full name with expanded initials.
• Married ladies must give their father's name in full and not husband's name
• Exact date of birth (not merely month or year) should be specified.
• Pin code should be mentioned in all your addresses.
Failure to comply with the provisions of section 139a of the income-tax act will make you to pay the penalty of Rs. 500/- (minimum) to Rs. 10,000 (maximum) for each default or failure.
How does Income Tax Department make sure that PAN is quoted on transactions mentioned above?
It is statutory accountability of an individual receiving document relating to economic/financial transactions notified by the CBDT to make sure that PAN has been duly quoted in the document.
How will these authorities verify PAN?
A provision for verifying PAN is available on the website of the Income Tax department.
Who must have a PAN?
a. All existing assesses or taxpayers or persons who are supposed to furnish a return of income, even on behalf of others, must possess PAN
b. Any person, who intends to enter into financial transaction where quoting PAN is obligatory, must also possess PAN.
c. The Assessing Officer may allot PAN to any individual either on his own or on a specific request from such person.
Can a person obtain or use more than one PAN?
Obtaining or possessing more than one PAN is illegal.
Where to apply for PAN?
In order to develop PAN related services, the Income Tax department has certified UTI Investor Services Ltd (UTIISL) to set up and manage/administer IT PAN Service Centers in all cities or towns where there is an Income Tax office and National Securities Depository Limited (NSDL) to dispense PAN services from TIN Facilitation Centers. For convenience of PAN applicants in big cities, UTIISL has set up more than one IT PAN Service Center and similarly there are more than one TIN Facilitation Centers.
How to apply for a PAN? Can an application for PAN be made on plain paper? Can an application for PAN be made in Form 49A obtained from anywhere?
PAN application must be made only on Form 49A. A PAN application Form 49A can be downloaded from the website of Income Tax department or UTIISL or NSDL (www.incometaxindia.gov.in, www.utiisl.co.in or tin.nsdl.com) or printed by local printers or photocopied (on A4 size 70 GSM paper) or taken from any other source. The form is also offered at IT PAN Service centers and TIN Facilitation centers.
What services are provided by these IT PAN Service Centers or TIN Facilitation Centers?
IT PAN Service Centers or TIN Facilitation Centers will provide PAN application forms (Form 49A) and forms for 'Request For New PAN Card Or/ And Changes In PAN Data', help the applicant in filling up the form, collect filled form and gives acknowledgement slip. After receiving PAN from the Income Tax department, UTIISL or NSDL as the case may be, will print the PAN card and deliver it to the applicant.
Can an application for PAN be made through Internet?
Yes, you can apply for fresh allotment of PAN through Internet. Moreover, requests for changes or alteration in PAN data or request for new PAN card (for an existing PAN) may also be made through Internet.
How do I get a PAN allotted quickly?
If an application for allotment of PAN is put forward through Internet and payment made through a 'nominated' credit card, the PAN is allotted on priority and communicated through email.
What if I submit incomplete Form 49A?
IT PAN Service Centers or TIN Facilitation Centers shall not obtain any incomplete and deficient PAN application. Though, these centers will aid applicants to correctly fill up Form 49A or 'Request For New PAN Card Or/ And Changes In PAN Data', as the case may be.
What documents and information have to be submitted along with the application for Form 49A?
a. Individual applicants must affix one recent, colored photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;
b. Any one document listed in Rule 114 must be submitted as proof of 'Identity' and 'Address'; and
c. Designation and code of the concerned Assessing Officer of Income Tax department should be mentioned in Form 49A.
Which documents will serve as proof of 'Identity' in case of Individual applicants, including minors and HUF applicants?
Photocopy of school leaving certificate or matriculation certificate or degree of a recognized educational institution or depository account or credit card or bank account or water bill or ration card or property tax assessment order or passport or voter identity card or driving license or certificate of identity signed by a MP/an MLA/ a Municipal Councilor or a Gazetted Officer;
In case the PAN applicant is a minor, any of above mentioned documents of any of the parents/guardian of such minor shall serve as proof of Identity.
In case PAN application is made on behalf of a HUF, any of above mentioned documents in respect of Karta of the HUF will serve as proof of Identity.
What documents will serve as proof of Identity and Address for other applicants?
Photocopy of Certificate of Registration issued by the Registrar of Companies or Copy of Certificate of Registration issued by the Registrar of Firms or Copy of Partnership Deed or Copy of Trust deed or Copy of Certificate of Registration Number issued by Charity Commissioner or Copy of Agreement or Copy of Certificate of Registration Number issued by Charity Commissioner or Registrar of Co-operative Society or any other Competent Authority or any other document originating from any Central or State Government Department establishing Identity and Address of such person.
How to find 'Assessing Officer code'?
Assessing Officer Code may be received from Income Tax Office where you put forward your return of income. Applicants who have never filed return of income till now may find out Assessing Officer code with the help of IT PAN Service Center or TIN Facilitation Center or jurisdictional Income Tax Office.
Is a photograph compulsory for making an application for PAN?
A photograph is obligatory only in case of 'Individual' applicants.
What is the procedure for applicants who cannot sign?
In case the applicants cannot sign, Left Hand Thumb impression of the applicant should be affixed on Form 49A or 'Request For New PAN Card Or/ And Changes In PAN Data' at the place meant for signatures and got attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.
Is it compulsory to mention telephone numbers on Form 49A?
Telephone number is not compulsory, but if provided it may aid faster communication.
Who can apply on behalf of non-resident, minor, lunatic, idiot, and court of wards?
Section 160 of IT Act, 1961 provides that a non-resident, a minor, lunatic, idiot, and court of wards and such other individuals may be represented through a Representative Assessee. In such cases, the Representative Assessee will make the application.
Are there any charges to be paid at IT PAN Service Centers or TIN Facilitation Centers?
UTIISL and NSDL have been allowed to collect Rs.60 + Service Tax as applicable, per PAN application and this comprises cost of a tamper proof PAN card. This amount must be paid in cash at IT PAN Service Center or the TIN Facilitation Center.
Do you need to apply for a PAN when you move or transfer from one city to another?
Permanent Account Number (PAN), as the name suggests, is a permanent number and it will not change during lifetime of PAN holder. Changing the address or city, although, may change the Assessing Officer. Such changes must, hence, be intimated to nearest IT PAN Service Center or TIN Facilitation Center for required alteration in PAN databases of the Income Tax department. These requests must be made in a form for 'Request For New PAN Card Or/ And Changes In PAN Data'
Will the existing PAN cards issued by the Department remain valid?
All PAN allotted and PAN card issued by the Department will remain valid forever. All persons who have been allotted a PAN need not apply once again.
Income Tax Department has issued me a PAN card; can I obtain a new tamper proof PAN card?
For receiving the tamper proof PAN card an application should be made in the form for 'Request For New PAN Card Or/ And Changes In PAN Data' to IT PAN Service Center or TIN Facilitation Center, in which existing PAN will have to be stated and old PAN card surrendered. The payment of Rs.60 + Service Tax as applicable should also be made.
I want to pay taxes today but I do not have a PAN?
It takes about 15 days to get a new PAN allotted. However, PAN can be received in around 5 days if application is made through Internet and processing fee paid through credit card. It is advisable to obtain PAN well in time.
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