A permanent account number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by an assessing officer of the Income Tax Department. It is mandatory to quote PAN on returns of income, all correspondence with any income tax authority and challans for any payments due to the Income Tax Department.
It is also compulsory to quote PAN in all documents pertaining to economic or financial transactions notified from time-to-time by the Central Board of Direct Taxes (CBDT). These transactions include sale and purchase of immovable property and motor vehicle, certain payments to hotels, certain payments in cash, time deposits exceeding Rs 50,000 with a bank or post office, deposit of cash of Rs 50,000 or more in a bank etc. It is compulsory to quote PAN in returns of income.
All existing assesses, taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN. Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also obtain PAN. An assessing officer may allot PAN to any person either on his own or on a specific request from such a person
One person can obtain and use only one PAN. Obtaining or possessing more than one PAN is against the law.
Some are not required to obtain or quote PAN. Those having only agricultural income and no taxable income need not have a PAN. They should file a declaration (Form 61) in respect of transactions where quoting of PAN is mandatory. Non-residents need not have a PAN.
In order to improve PAN related services, the Income Tax Department has authorised UTI Technology Services Ltd (UTITSL) and NSDL to set up and manage PAN Service Centers in all cities or towns where there is an Income Tax office. Location of PAN Service Centers in any city may be obtained from the local Income Tax Office.
PAN Service Centers supply new PAN application forms (Form 49A), assist the applicant in filling up the form, collect filled forms and issue acknowledgement slips. After obtaining PAN from the Income Tax Department, they will print the PAN card and deliver it to the applicant. Nominal service charges are payable to the PAN Service Centers.
A PAN application can be made only on the new Form 49A.
These documents and information have to be submitted along with an application:
• Individual applicants will have to affix one recent, coloured photograph (stamp Size) on Form 49A
• Any one document listed in Rule 114 must be supplied as proof of identity and address
• Designation and code of the assessing officer concerned of the Income Tax Department
Documents for identity proof
The documents that will serve as proof of identity in case of individual applicants, including minors and HUF:
• Copy of school leaving certificate, matriculation certificate, or degree certificate from a recognised educational institution
• Depository account
• Credit card or bank account
• Ration card or property tax assessment order
• Passport or voter identity card
• Driving license
• Certificate of identity signed by a MP, MLA, municipal councillor or a gazetted officer
In case the PAN applicant is a minor, any of these documents of any one of the parents or guardian serves as proof of identity. In case a PAN application is made on behalf of a HUF, any of these documents in respect of the Karta of the HUF will serve as proof of identity.
Documents for address proof
The documents that will serve as proof of address in case of individual applicants, including minors and HUF:
• Copy of power or telephone bill
• Depository account
• Credit card or bank account
• Ration card, passport or voter identity card
• Property tax assessment order
• Driving license or rent receipt
• Certificate of address
signed by a MP, MLA, municipal councillor or a gazetted officer
• Employer's certificate
According to Section 160 of the Income Tax Act, a non-resident or minor may be represented by a 'representative assessee'. In such cases, the application for PAN should be made by the 'representative assessee'.
In case the applicant cannot sign, the left hand thumb impression should be affixed on Form 49A at the place meant for the signature, and this should be attested by a magistrate, notary public or gazetted officer, under official seal and stamp.
