Friday, 1 January 2016

What is PAN or Permanent Account Number | Complete Details

Permanent Account Number is a number allotted to a person by the Assessing Officer for the purpose of identification. P.A.N. of the new series has 10 alphanumeric characters and is issued in the form of laminated card.

Who shall apply for PAN?

every person who carries on any business or profession whose total turnover or gross receipts exceed Rs.5 lakhs in any previous year or any person required to file a return of income u/s 139(4A) shall apply for Permanent Account Number. Besides, any person not fulfilling the above conditions may also apply for allotment of PAN.
With effect from 01.06.2000, the Central Government may by notification specify any class/classes of person including importers and exporters, whether or not any tax is payable by them, and such persons shall also then apply to the Assessing Officer for allotment of PAN. W.e.f. 01.04.2006 a person liable to furnish a return of fringe benefits under the newly introduced section 115WD of the I.T. Act is also required to apply for allotment of PAN. Of course, if such a person already has been allotted a PAN he shall not be required to obtain another Permanent Account Number.
The Finance Act, 2006 has provided that for the purpose of collecting any information, the Central Govt. may by way of notification specify any class or classes of persons for allotment of PAN and such persons shall apply to the Assessing Officer within the prescribed time. Provision for Suo moto allotment of PAN has also been introduced w.e.f.1.6.2006 as per which the assessing officer may allot a Permanent Account No. to any person whether or not any tax is payable by him having regard to the nature of transactions.
What is PAN or Permanent Account Number Complete Details

Where will you require PAN Card?

A: Transactions in which quoting of PAN is Mandatory
1. Purchase and sale of immovable property.
2. Purchase and sale of motor vehicles.
3. Transaction in shares exceeding Rs.50,000.
4. Opening of new bank accounts.
5. Fixed deposits of more than Rs.50,000.
6. Application for allotment of telephone connections.
7. Payment to hotels exceeding Rs.25,000.
8. Provided that till such time Permanent Account Number is allotted to a person, he may quote his General Index register Number or GIR No.

How to apply for Permanent Account Number ?

Application for allotment of PAN is to be made in Form 49A. Following points must be noted while filling the above form:-
i) Application Form must be typewritten or handwritten in black ink in BLOCK LETTERS.
ii) Two black & white photographs are to be annexed.
iii) While selecting the “Address for Communication”, due care should be exercised as all communications thereafter would be sent at indicated address.
iv) In the space given for “Father’s Name”, only the father’s name should be given. Married ladies may note that husband’s name is not required and should not be given.
v) Due care should be exercised to fill the correct date of birth.
vi) The form should be signed in English or any of the Indian Languages in the 2 specified places. In case of thumb impressions attestation by a Gazetted Officer is necessary.

What are the benefits of having a PAN Card?

A PAN number has been made compulsory for every transaction with the Income Tax department. It is also mandatory for numerous other financial transactions such as opening of bank accounts, availing institutional financial credits, purchase of high-end consumer item, foreign travel, transaction of immovable properties, dealing in securities etc. A PAN card is a valuable means of photo identification accepted by all government and non-government institutions in the country.

I have lost my PAN card but remember my number. Do I necessarily need to get a fresh card?

With your Permanent Account Number, you can continue to transact with the Income Tax department. However, in respect of other agencies you may encounter constraints without a PAN card since it doubles as a photo identity card.

Is it mandatory to file return after getting my PAN Card?

No. Return is to be filed only if you have taxable income.

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